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 62,000
Pounds started into productionduring May 270,000
Pounds completed and transferredout ?
Pounds in process, May 31;materials 70% complete;
conversion 30% complete 22,000
Cost data:
Work in process inventory, May1:
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 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.

Answer & Explanation Solved by verified expert

3.9 Ratings (630 Votes)

Unit transferred out 6200027000022000 310000 Units 1 Equivalent unit of material 3100002200070 325400 Equivalent unit of conversion 3100002200030 316600 2 Compute the cost per equivalent unit for See Answer

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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% complete62,000Pounds started into productionduring May270,000Pounds completed and transferredout?Pounds in process, May 31;materials 70% complete;conversion 30% complete22,000Cost data:Work in process inventory, May1:Materials cost$55,100Conversion cost$26,800Cost added during May:Materials cost$286,570Conversion cost$147,330Required: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		62,000
Pounds started into productionduring May		270,000
Pounds completed and transferredout		?
Pounds in process, May 31;materials 70% complete; conversion 30% complete		22,000
Cost data:
Work in process inventory, May1:
Materials cost	$	55,100
Conversion cost	$	26,800
Cost added during May:
Materials cost	$	286,570
Conversion cost	$	147,330