Builder Products, Inc., uses the weighted-average method in its process costing

Question

Builder Products, Inc., uses the weighted-average method in its process costing system. It manufactures a caulking compound that goes through three processing stages prior to completion. Information on work in the first department, Cooking, is given below for May: Production data: Pounds in process, May 1 materials 1008 complete; rsion 90% complete 63,000 280,000 Pounds started into production during May Pounds completed and transferred out Pounds in process, May 31; materials 75% complete ; conversion 25% complete 23,000 Cost data: Nork in process inventory, May 1: Materials cost Conversion cost Cost added during May Materials cost Conversion cost $67,500 $ 29,100 $350, 690 $159, 835 Required: 1. Compute the equivalent units of production for materials and conversion for May. 2. Compute the cost per equivalent unit for materials and conversion for May. 3. Compute the cost of ending work in process inventory for materials, conversion, and in total for May. 4. Compute the cost of units transferred out to the next department for materials, conversion, and in total for May. 5. Prepare a cost reconciliation report for May. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Compute the equivalent units of production for materials and conversion for May. Equivalent units of production

Explanation / Answer

UNITS TO ACCOUNT FOR: Beginning Work in Process units 63,000 Add: Units Started in Process 280,000 Total Units to account for: 343,000 UNITS TO BE ACCOUNTED FOR: Units started and completed 320,000 Ending Work in Process 23,000 Total Units to be accounted for: 343,000 Equivalent Units: Material Cost Conversion % Completion Units % Completion Units Units started and completed 100% 320,000 100% 320,000 Ending Work in Process 75% 17,250 25% 5,750 Total Equivalent units 337,250 325,750 TOTAL COST TO ACCOUNT FOR: Material Conversion Beginning work in Process 67,500 29,100 Cost Added during May 350,690 159,835 Total Cost to account for: 418,190 188,935 Total Cost to account for: 607,125 COST PER EQUIVALENT UNIT: Material Conversion Total cost added during the year 418,190 188,935 Equivalent Units 337,250 325,750 Cost per Equivalent unit 1.24 0.58 TOTAL COST ACCOUNTED FOR: Units started and Transferred out (320000 units) Equivalent unit Cost per EU Total Cost Material 320,000 1.24 396800 Conversion Cost 320,000 0.58 185600 Total Cost of Units completed and transferred out: 582400 Ending Work in process (23,000 units) Equivalent unit Cost per EU Total Cost Material 17,250 1.24 21390 Conversison Cost 5,750 0.58 3335 Total cost of Ending Work in process: 24,725 Req 1. Material Converesion Equivalent units 337250 325750 Req 2. Material Converesion Cost per EUP 1.24 0.58 Req 3. Cost of Ending WIP:   $ 24725 Req 4. Cost of Units completed: $ 582400 Req 5. Reconciliation Report: Cost to account for: Cost of beginning WIP (67500+29100) 96600 Current cost (350690+159835) 510525 Total cost to account ffor 607125 Cost accounted for: Cost of Units completed 582400 Cost of ending WIP 24725 Total cost accounted for 607125 Difference 0

Related Questions

Navigate

• Browse (All)
• Browse B
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.