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 84,000
Pounds started into productionduring May 490,000
Pounds completed and transferredout ?
Pounds in process, May 31;materials 60% complete;
conversion 40% complete 44,000
Cost data:
Work in process inventory, May1:
Materials cost $ 130,200
Conversion cost $ 21,100
Cost added during May:
Materials cost $ 676,580
Conversion cost $ 115,800
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 (615 Votes)

Units Reconciliation of Units A Opening WIP 84000 B Introduced 490000 CAB TOTAL 574000 D Transferred 530000 ECD Closing WIP 44000 Statement of Equivalent Units Material Conversion Cost Units Complete Equivalent units Complete Equivalent units Transferred 530000 100 530000 100 530000 Closing WIP 44000 60 26400 40 17600 Total 574000 Total 556400 Total 547600 Cost per 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% complete84,000Pounds started into productionduring May490,000Pounds completed and transferredout?Pounds in process, May 31;materials 60% complete;conversion 40% complete44,000Cost data:Work in process inventory, May1:Materials cost$130,200Conversion cost$21,100Cost added during May:Materials cost$676,580Conversion cost$115,800Required: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		84,000
Pounds started into productionduring May		490,000
Pounds completed and transferredout		?
Pounds in process, May 31;materials 60% complete; conversion 40% complete		44,000
Cost data:
Work in process inventory, May1:
Materials cost	$	130,200
Conversion cost	$	21,100
Cost added during May:
Materials cost	$	676,580
Conversion cost	$	115,800