Builder Products, Inc., uses the weighted-average method in itsprocess costing system. It manufactures a...

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Accounting

Builder Products, Inc., uses the weighted-average method in itsprocess costing system. It manufactures a caulking compound thatgoes through three processing stages prior to completion.Information on work in the first department, Cooking, is givenbelow for May:
Production data:
Pounds in process, May 1;materials 100% complete;
conversion 90% complete 60,000
Pounds started into productionduring May 250,000
Pounds completed and transferredout ?
Pounds in process, May 31;materials 60% complete;
conversion 40% complete 20,000
Cost data:
Work in process inventory, May1:
Materials cost $ 59,000
Conversion cost $ 23,400
Cost added during May:
Materials cost $ 306,420
Conversion cost $ 128,580
Required:
1. Compute the equivalent units of production for materials andconversion for May.
2. Compute the cost per equivalent unit for materials andconversion for May.
3. Compute the cost of ending work in process inventory formaterials, conversion, and in total for May.
4. Compute the cost of units transferred out to the nextdepartment for materials, conversion, and in total for May.
5. Prepare a cost reconciliation report for May.

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3.6 Ratings (436 Votes)


	Beginning work in process		60,000	Completed & Transferred			290,000
	pounds started in production		250,000	ending work in process			20,000
	units to be accounted		310,000	units accounted for			310,000


1)	Equivalent units of production
			units	%	materials	%	CC
	Completed & Transferred		290,000	100%	290,000	100%	290,000
	ending work in process		20,000	60%	12000	40%	8000
	Equivalent units of production				302,000		298,000


2)	Cost per unit
				Materials	CC	Total
	Beginning work in proces			59000	23,400	82400
	cost added during the year			306,420	128,580	435,000
	total cost			365420	151,980	517400
	equivalent units			302,000	298,000
	cost per unit			1.21	0.51	1.72


3)	cost of ending work in process inventory

	Materials	12000*1.21		14520
	CC	8000*.51		4080
	cost of ending WIP			18600



4)	cost of units tranferred out
	290000 units *1.72=			498800


5)	cost reconcilation report

	costs to be accouted
	Beginning WIP			82,400
	cost added during the year			435,000
	cost to be accounted			517,400

	cost accounted for
	Completed & transferred			498,800
	ending WIP			18,600
	cost accounted for			517,400

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Transcribed Image Text

In: AccountingBuilder Products, Inc., uses the weighted-average method in itsprocess costing system. It manufactures a caulking...Builder Products, Inc., uses the weighted-average method in itsprocess costing system. It manufactures a caulking compound thatgoes through three processing stages prior to completion.Information on work in the first department, Cooking, is givenbelow for May:Production data:Pounds in process, May 1;materials 100% complete;conversion 90% complete60,000Pounds started into productionduring May250,000Pounds completed and transferredout?Pounds in process, May 31;materials 60% complete;conversion 40% complete20,000Cost data:Work in process inventory, May1:Materials cost$59,000Conversion cost$23,400Cost added during May:Materials cost$306,420Conversion cost$128,580Required:1. Compute the equivalent units of production for materials andconversion for May.2. Compute the cost per equivalent unit for materials andconversion for May.3. Compute the cost of ending work in process inventory formaterials, conversion, and in total for May.4. Compute the cost of units transferred out to the nextdepartment for materials, conversion, and in total for May.5. Prepare a cost reconciliation report for May.


Production data:
Pounds in process, May 1;materials 100% complete; conversion 90% complete		60,000
Pounds started into productionduring May		250,000
Pounds completed and transferredout		?
Pounds in process, May 31;materials 60% complete; conversion 40% complete		20,000
Cost data:
Work in process inventory, May1:
Materials cost	$	59,000
Conversion cost	$	23,400
Cost added during May:
Materials cost	$	306,420
Conversion cost	$	128,580