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: 70,000 350,000 30,000 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 70% complete; conversion 30% complete Cost data: dala: Work in process inventory, May 1: Materials cost Conversion cost Cost added during May: Materials cost Conversion cost $ 86,900 $ 39, 300 $451,510 $216,060 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

Answer 1

Solution 1:

Builder Products Inc.
Production Cost report - First Department
Computation of Equivalent unit of Production
Particulars	Physical Units	Material	Conversion
Units to account for:
Beginning WIP	70000
Started into Production	350000
Total units to account for	420000
Units accounted for:
Unit completed & Transferred out	390000	390000	390000
Units in ending inventory:	30000
Material (70%)		21000
Conversion (30%)			9000
Equivalent units of production	420000	411000	399000

Solution 2:

Builder Product Inc, Computation of Cost per equivalent unit - First department
Particulars	Material	Conversion	Total
Opening WIP	$86,900	$39,300	$126,200
Cost Added during Period	$451,510	$216,060	$667,570
Total cost to be accounted for	$538,410	$255,360	$793,770
Equivalent units of production	411000	399000
Cost per Equivalent unit	$1.31	$0.64

Solution 3 & 4:

Builder Product Inc. Computation of Cost of ending WIP and units completed & transferred out - First Department
Particulars	Material	Conversion	Total
Equivalent unit of Ending WIP	21000	9000
Cost per equivalent unit	$1.31	$0.64
Cost of Ending WIP (Equivalent unit * Cost per equivalent unit)	$27,510	$5,760	$33,270
Units completed and transferred	390000	390000
Cost of units completed & Transferred (Unit completed * cost per equivalent unit)	$510,900	$249,600	$760,500

Solution 5:

Cost reconciliation - First Department
Particulars	Amount
Costs to be accounted for:
Cost of beginning WIP inventory	$126,200.00
Cost added to production	$667,570.00
Total Costs to be accounted for	$793,770.00
Costs accounted for as follows:
Cost of unit transferred out	$760,500
Ending WIP:
Material	$27,510
Converison	$5,760
Total Ending WIP	$33,270
Total costs accounted for	$793,770