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: 63,000 280,000 ? 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 75% complete; conversion 25% complete Cost data: Work in process inventory, May 1: Materials cost Conversion cost Cost added during May: Materials cost Conversion cost 23,000 $ 67,500 $ 29,100 $350,690 $159,835 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.

Answer 1

		Material	Conversion	Total
1)	Equivalent Units	337,250	325,750
2)	Cost per equivalnet unit	1.24	0.58
3)	Cost of Ending WIP	21,390	3,335	24,725
4)	Cost of Transferred Units	396,800	185,600	582,400
5)	Cost Reconciliation Report
	Costs to be acounted for:
		Total	Material	Conversion
	Costs in beginning inventory	96,600	67,500	29,100
	Cost added dueing the year	510,525	350,690	159,835
	Total cost to account for	607,125	418,190	188,935
	Equivalent Units from above		337250	325750
	Cost per equivalnet unit		1.24	0.58
		Total	Material	CC
	Cost Accounted for
	Units completed and transfer	582,400	396,800	185,600
	Units in ending inventory	24,725	21,390	3,335
	Total Cost Accounted for	607,125	418,190	188,935
	Builder products inc.
	Production Cost Report
		Actual Units
	Caluclation of Physical UNITS:
	Units in begining inventory	63000
	Units started during the period	280000
	Units to be accounted for	343000
		Actual Units	Equivalent Units
			Material	Conversion
	Units Completed and Transferred	320000	320000	320000
	Units in ending inventory	23000	17250	5750
	Total accounted for	343000	337250	325750