Thank you! method in its process costing system. It manufactures a caulking comp

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Thank you!

method in its process costing system. It manufactures a caulking compound that through three processing stages prior to completion. Information on work in the first department, Cooking, is given below for Builder Products, Inc, uses the weighted -average May Production data Pounds in process, May 1; materials 100% complete; 83,880 488,008 conversion 90% complete Pounds started into production during May Pounds completed and transferred out Pounds in process, May 31; materials 75% complete; conversion 25% complete 43,800 Cast data: Work in process inventory, May 1: $ 1 28, $ 53,99 Materials cost Conversion cost Cost added during May: Materials cost Conversion cost 666,948 $ 296,395 Required: 1. Compute the equivalent units of production for materiais 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 83000 Add: Units started during May 480000 Less: Ending inventory 43000 Units completed and transferred 520000 Statement Showing Equivalent Units Whole units Materials Conversion Beginning WIP inventory 83000 83000 83000 Started & completed 437000 437000 437000 Ending inventory 43000 32250 10750 Units accounted for 563000 552250 530750 Equivalent units of production Materials Conversion 552250 530750 Statement showing calculation Cost per Equivalent unit                 Cost Data: Total Material Conversion Beginning WIP inventory $1,82,200 $1,28,300 $53,900 Current costs              $9,63,335 $6,66,940 $2,96,395 Total cost to account for $11,45,535 $7,95,240 $3,50,295 Divided by Equivalent units 552250 530750 Cost per Equivalent unit                 $1.44 $0.66 Cost Assignment: Ending Work in process: Material $46,440 Conversion $7,095 Total Ending Work in process $53,535 Cost of units completed and transferred Material $7,48,800 Conversion $3,43,200 Total $10,92,000 Cost to be accounted for: Beginning WIP inventory $1,82,200 Current costs              $9,63,335 Total costs to be accounted for $11,45,535 Cost accounted for as follws: Cost of units completed and transferred $10,92,000 Cost of ending work in process $53,535 Total costs accounted for $11,45,535

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