Builder Products, Inc., uses the weighted-average method in its process costing
ID: 2333618 • Letter: B
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 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 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.
Explanation / Answer
Beginning WIP inventory
Beginning WIP inventory
63000 Add: Units started during May 280000 Less: Ending inventory 23000 Units completed and transferred 320000 1 Equivalent Units Whole units Materials Conversion Beginning WIP inventory 63000 63000 63000 Started & completed 257000 257000 257000 Ending inventory 23000 17250 5750 Units accounted for 343000 337250 325750 Materials Conversion Equivalent units of production 337250 325750 2 Cost Data: Total Material Conversion Beginning WIP inventory 96600 67500 29100 Current costs 510525 350690 159835 Total cost to account for 607125 418190 188935 Divided by Equivalent units 337250 325750 Cost per Equivalent unit 1.82 1.24 0.58 Materials Conversion Cost per Equivalent unit 1.24 0.58 3 Cost Assignment: Ending Work in process: Material 21390 Conversion 3335 Total Ending Work in process 24725 4 Cost of units completed and transferred Material 396800 Conversion 185600 Total 582400 5 Cost to be accounted for: Beginning WIP inventory 96600 Current costs 510525 Total costs to be accounted for 607125 Cost accounted for as follows: Cost of units completed and transferred 582400 Cost of ending work in process 24725 Total costs accounted for 607125Related Questions
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