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: 64,000 290,000 ? 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 60# complete; conversion 40complete Cost data: Work in process inventory, May 11 Materials cost Conversion cost Cost added during May: Materials cost Conversion cost 24,000 $ 69,500 $ 23,500 $361,000 $129,320 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.

Answer 1

Please see the attachment for the answers

Answer 1 Calculation of Equivalent Units of Production Materials Conversion 330,000 Transferred to next department Equivalent units in ending WIP Materials: 24,000 * 60% Conversion: 24,000 * 40% Equivalent units of Production 330,000 14,400 9,600 339,600 344,400 Units transferred to next department = Units (Beg WIP) +Units started in production - Units (Ending WIP) 64,000 + 290,000 - 24,000 330,000 Answer 2 Cost of Beg WIP Add: Cost added during the period Total Cost (1) Equivalent units of production (ii) Cost per units of prduction (i/ii) Materials 69,500 361,000 430,500 344,400 1.25 Conversion 23,500 129,320 152,820 339,600 0.45

Materials Conversion Total Answer 3 & 4 Ending WIP Equivalent units Cost per equivalent unit Cost of ending WIP Inventory Units completed and transferred out Units transferred to the next deppt Cost per equivalent unit Cost of units completed and transferred out 14,400 1.25 18,000 9,600 0.45 4,320 22,320 330,000 1.25 412,500 330,000 0.45 148,500 561,000 Answer 5 Total Cost 93,000 490,320 583,320 Cost accounted for: Cost of Beg WIP (69,500 + 23,500) Cost added to production during the period (361,000 + 129,320) Total Cost to be accounted for Cost accounted for: Cost of units completed & Transferred out Cost of ending units WIP Total Cost to be accounted for 561,000 22,320 583,320