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

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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 production during May 280,000
Pounds completed and transferred out ?
Pounds in process, May 31; materials 75% complete;
conversion 25% complete 23,000
Cost data:
Work in process inventory, May 1:
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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Solution 1 Compute the equivalent units of production for materials and conversion for May Details Whole units Percentage Material Percentage Conversion cost Units transferred out 320000 100 320000 100 320000 Ending work in process 23000 75 17250 25 5750 Total See Answer

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Production data:
Pounds in process, May 1; materials 100% complete; conversion 90% complete		63,000
Pounds started into production during May		280,000
Pounds completed and transferred out		?
Pounds in process, May 31; materials 75% complete; conversion 25% complete		23,000
Cost data:
Work in process inventory, May 1:
Materials cost	$	67,500
Conversion cost	$	29,100
Cost added during May:
Materials cost	$	350,690
Conversion cost	$	159,835