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 ? 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 15,000 $ 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.

Answer 1

		Material	Conversion	Total
1)	Equivalent Units	104,000	98,000
2)	Cost per equivalnet unit	1.50	1.00
3)	Cost of Ending WIP	13,500	3,000	16,500
4)	Cost of Transferred Units	142,500	95,000	237,500
5)	Cost Reconciliation Report
	Costs to be acounted for:
		Total	Material	Conversion
	Costs in beginning inventory	8,700	1,500	7,200
	Cost added dueing the year	245,300	154,500	90,800
	Total cost to account for	254,000	156,000	98,000
	Equivalent Units from above		104000	98000
	Cost per equivalnet unit		1.50	1.00
		Total	Material	CC
	Cost Accounted for
	Units completed and transfer	237,500	142,500	95,000
	Units in ending inventory	16,500	13,500	3,000
	Total Cost Accounted for	254,000	156,000	98,000
	Builder products inc.
	Production Cost Report
		Actual Units
	Caluclation of Physical UNITS:
	Units in begining inventory	10000
	Units started during the period	100000
	Units to be accounted for	110000
		Actual Units	Equivalent Units
			Material	Conversion
	Units Completed and Transferred	95000	95000	95000
	Units in ending inventory	15000	9000	3000
	Total accounted for	110000	104000	98000