Question

Builder Products, Inc., uses the weighted average method in its process costing system. It manufactures a caulking compound that goes through three processing stages prior to completion. Information on work in the first department, Cooking, is given below for May: 10,000 100,000 ? 15,000 Production data: Pounds in process, May 1; materials 100% complete; conversion 80% complete Pounds started into production during May Pounds completed and transferred out Pounds in process, May 31; materials 60% complete; conversion 20% complete Cost data: Work in process inventory, May 1: Materials cost Conversion cost Cost added during May: Materials cost Conversion cost $ 1,500 $ 7,200 $ 154,500 $ 90,800 Required: 1. Compute the equivalent units of production for materials and conversion for May. 2. Compute the cost per equivalent unit for materials and conversion for May. 3. Compute the cost of ending work in process inventory for materials, conversion, and in total for May. 4. Compute the cost of units transferred out to the next department for materials, conversion, and in total for May. 5. Prepare a cost reconciliation report for May. Complete this question by entering your answers in the tabs below.

Answer 1

	Beginning work in process			10,000	Completed & Transferred			95,000
	pounds started in production			100,000	ending work in process			15,000
	units to be accounted			110,000	units accounted for			110,000
1)	Equivalent units of production
				units	%	materials	%	CC
	Completed & Transferred			95,000	100%	95,000	100%	95,000
	ending work in process			15,000	60%	9000	20%	3000
	Equivalent units of production					104,000		98,000
2)	Cost per unit
					Materials	CC	Total
	Beginning work in proces				1,500	7,200	8700
	cost added during the year				154,500	90,800	245,300
	total cost				156000	98,000	254000
	equivalent units				104,000	98,000
	cost per unit				1.5	1	2.5
3)	cost of ending work in process inventory
	Materials	9000*1.5			13500
	CC	3000*1			3000
	cost of ending WIP				16500
4)	cost of units tranferred out
	materials	95000*1.5			142500
	Conversion	95000*1			95000
	total				237500
5)	cost reconcilation report
	costs to be accouted for:
	Beginning WIP				8,700
	cost added during the year				245,300
	total cost to be accounted				254,000
	cost accounted for
	ending work in process				16,500
	Completed & transferred				237,500
	cost accounted for				254,000