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:

Production data:
Pounds in process, May 1; materials 100% complete; conversion 90% complete		62,000
Pounds started into production during May		270,000
Pounds completed and transferred out		?
Pounds in process, May 31; materials 70% complete; conversion 30% complete		22,000
Cost data:
Work in process inventory, May 1:
Materials cost	$	55,100
Conversion cost	$	26,800
Cost added during May:
Materials cost	$	286,570
Conversion cost	$	147,330

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	325,400	316,600
2)	Cost per equivalnet unit	1.05	0.55
3)	Cost of Ending WIP	16,170	3,630	19,800
4)	Cost of Transferred Units	325,500	170,500	496,000
5)	Cost Reconciliation Report
	Costs to be acounted for:
		Total	Material	Conversion
	Costs in beginning inventory	81,900	55,100	26,800
	Cost added dueing the year	433,900	286,570	147,330
	Total cost to account for	515,800	341,670	174,130
	Equivalent Units from above		325400	316600
	Cost per equivalnet unit		1.05	0.55
		Total	Material	CC
	Cost Accounted for
	Units completed and transfer	496,000	325,500	170,500
	Units in ending inventory	19,800	16,170	3,630
	Total Cost Accounted for	515,800	341,670	174,130
	Builder products inc.
	Production Cost Report
		Actual Units
	Caluclation of Physical UNITS:
	Units in begining inventory	62000
	Units started during the period	270000
	Units to be accounted for	332000
		Actual Units	Equivalent Units
			Material	Conversion
	Units Completed and Transferred	310000	310000	310000
	Units in ending inventory	22000	15400	6600
	Total accounted for	332000	325400	316600