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 63,000
Pounds started into productionduring May 280,000
Pounds completed and transferredout ?
Pounds in process, May 31;materials 75% complete;
conversion 25% complete 23,000
Cost data:
Work in process inventory, May1:
Materials cost $ 67,500
Conversion cost $ 29,100
Cost added during May:
Materials cost $ 350,690
Conversion cost $ 159,835
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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4.5 Ratings (973 Votes)

1 Materials Conversion Equivalent units of production 337250 325750 2 Materials Conversion Cost per equivalent unit 124 058 3 Materials Conversion Total Cost of ending work in process inventory 21390 3335 24725 4 Materials Conversion Total Cost of units completed and transferred out 396800 185600 582400 5 See Answer

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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% complete63,000Pounds started into productionduring May280,000Pounds completed and transferredout?Pounds in process, May 31;materials 75% complete;conversion 25% complete23,000Cost data:Work in process inventory, May1:Materials cost$67,500Conversion cost$29,100Cost added during May:Materials cost$350,690Conversion cost$159,835Required: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		63,000
Pounds started into productionduring May		280,000
Pounds completed and transferredout		?
Pounds in process, May 31;materials 75% complete; conversion 25% complete		23,000
Cost data:
Work in process inventory, May1:
Materials cost	$	67,500
Conversion cost	$	29,100
Cost added during May:
Materials cost	$	350,690
Conversion cost	$	159,835