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: 65,000 300,000 ? 25,000 Production data: Pounds in process, May 1; materials 100% complete; conversion 90% complete Pounds started into production during May Pounds completed and transferred out Pounds in process, May 31; materials 80% complete; conversion 20% complete Cost data: Work in process inventory, May 1: Materials cost Conversion cost Cost added during May: Materials cost Conversion cost $ 73,200 $ 24,400 $380,400 $134,300 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. Required 1 Required 2 Required 3 Required 4 Required 5 Compute the equivalent units of production for materials and conversion for May. Materials Conversion Equivalent units of production < Required 1 Required 2 >

Answer 1

1) Equivalent unit

	Material	Conversion Cost
Unit transferred out	340000	340000
Ending WIP	25000*80% = 20000	5000
Equivalent unit	360000	345000

2) Cost per equivalent unit

	Material	Conversion
Beginning WIP	73200	24400
Cost added	380400	134300
Total Cost	453600	158700
Equivalent unit	360000	345000
Cost per equivalent unit	1.26	0.46

3) Cost of ending WIP

	Material	Conversion	Total
Cost of ending WIP	20000*1.26 = 25200	5000*.46 = 2300	27500

4) Cost of unit transferred out

	Material	Conversion	Total
Cost of unit transferred out	340000*1.26 = 428400	156400	584800

5) Cost reconciliation

Cost to be accounted for
Beginning WIP	97600
Cost added	514700
Total Cost to be accounted for	612300
Cost accounted as
Cost of unit transferred out	584800
Cost of ending WIP	27500
Total Cost accounted as	612300