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 808 complete Pounds started into production during May Pounds completed and transferred out Pounds in process, May 31; materials 60% complete; conversion 201 complete Cost data Work in process inventory, May 1: Materials cost Conversion cost Cost added during May! Materials coat 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, Ind 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. < Prev 4 of 4 !!! Next

Answer 1

Solution

	Material	Conversion
Equivalent Units of Production	104,000	98,000

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	Material	Conversion
Cost per equivalent Unit	$ 1.50	$ 1.00

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	Material	Conversion	Total
Ending Inventory	$ 13,500	$ 3,000	$ 16,500

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	Material	Conversion	Total
Units Completed and transferred	$ 142,500	$ 95,000	$ 237,500

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Cost Reconciliation
Costs to be accounted for:
Beginning Wip cost	$ 8,700
Cost incurred during period	$ 245,300
Total cost to be accounted for	$ 254,000
Costs accounted for as follows:
Cost of Units Transferred Out	$ 237,500
Cost of Ending Wip	$ 16,500
Total cost accounted for	$ 254,000

Working

Reconciliation of Units
A	Beginning WIP	10,000
B	Introduced	100,000
C=A+B	TOTAL	110,000
D	Transferred out	95,000
E=C-D	Ending WIP	15,000

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Statement of Equivalent Units(Weighted average)
				Material		Conversion
	Units			Complete %	Equivalent units	Complete %	Equivalent units
Transferred out	95,000			100%	95,000	100%	95,000
Ending WIP	15,000			60%	9,000	20%	3,000
Total	110,000			Total	104,000	Total	98,000

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Cost per Equivalent Units (Weighted average)
COST		Material	Conversion	TOTAL
Beginning WIP Inventory Cost (A)		$ 1,500	$ 7,200	$ 8,700
Cost incurred during period (B)		$ 154,500	$ 90,800	$ 245,300
Total Cost to be accounted for (C=A+B)		$ 156,000	$ 98,000	$ 254,000
Total Equivalent Units(D)		104,000	98,000
Cost per Equivalent Units (E=C/D)		$ 1.50	$ 1.00	$ 2.50

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Statement of cost (Weighted average)
Cost	Equivalent Cost/unit	Ending WIP		Transferred
		Units	Cost Allocated	Units	Cost Allocated
Material	$ 1.50	9,000	$          13,500.00	95,000	$        142,500.00
Conversion	$ 1.00	3,000	$             3,000.00	95,000	$          95,000.00
TOTAL	$ 254,000	TOTAL	$ 16,500	TOTAL	$ 237,500