SHOW WORK PLEASE Problem 4-16 Comprehensive Problem-Weighted-Average Method [LO4
ID: 2338344 • Letter: S
Question
SHOW WORK PLEASE
Problem 4-16 Comprehensive Problem-Weighted-Average Method [LO4-2, LO4-3, LO4-4, LO4-5]
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 76,000 Pounds started into production during May 410,000 Pounds completed and transferred out ? Pounds in process, May 31; materials 60% complete;
conversion 40% complete 36,000 Cost data: Work in process inventory, May 1: Materials cost $ 117,900 Conversion cost $ 53,600 Cost added during May: Materials cost $ 613,080 Conversion cost $ 294,700
Explanation / Answer
1. Compute the equivalent units of production for materials and conversion for May.
Unit transferred out = 76000+410000-36000 = 450000
Equivalent unit of material = 450000+(36000*60%) = 471600
Equivalent unit of conversion = 450000+(36000*40%) = 464400
2. Compute the cost per equivalent unit for materials and conversion for May.
Material = (117900+613080)/471600 = 1.55
Conversion = (53600+294700)/464400 = 0.75
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.
Material Conversion Total Cost of ending work in process 21600*1.55 = 33480 14400*.75 = 10800 44280Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.