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:

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.

Production data: Pounds in process, May 1; materials 100% complete;
conversion 90% complete 71,000 Pounds started into production during May 360,000 Pounds completed and transferred out Pounds in process, May 31; materials 75% complete;
conversion 25% complete 31,000 Cost data: Work in process inventory, May 1: Materials cost 90,100 Conversion cost 46,400 Cost added during May: Materials cost 468,590 Conversion cost 255,335

Explanation / Answer

Completed and Transferred Units :-

1) Equivalent Units :-

2) Cost Per Equivalent Unit :-

3) Cost of Ending Work in Process inventory :-

4) Cost of Completed and Transferred units :-

Particulars Amount($) Beginning WIP Inventory 71000 Add : Units Started During May 360000 Less : Ending WIP Inventory (31000) Completed and Transferred Unit 400000

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