Builder Products, Inc., uses the weighted-average method in its process costing
ID: 2338797 • 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 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 productionExplanation / Answer
Units
Reconciliation of Units
A
Opening WIP
63,000
B
Introduced
280,000
C=A+B
TOTAL
343,000
D
Transferred
320,000
E=C-D
Closing WIP
23,000
Statement of Equivalent Units
Material
Conversion Cost
Units
Complete %
Equivalent units
Complete %
Equivalent units
Transferred
320,000
100%
320,000
100%
320,000
Closing WIP
23,000
75%
17,250
25%
5,750
Total
343,000
Total
337,250
Total
325,750
Cost per Equivalent Units
COST
Material
Conversion Cost
TOTAL
Beginning WIP Inventory Cost
$ 67,500.00
$ 29,100.00
$ 96,600.00
Cost incurred during period
$ 350,690.00
$ 159,835.00
$ 510,525.00
Total Cost to be accounted for
$ 418,190.00
$ 188,935.00
$ 607,125.00
Total Equivalent Units
337,250
325,750
Cost per Equivalent Units
$ 1.2400
$ 0.5800
Statement of cost
Cost
Equivalent Cost/unit
Ending WIP
Transferred
Units
Cost Allocated
Units
Cost Allocated
Material
$ 1.24
17,250
$ 21,390.00
320,000
$ 396,800.00
Conversion Cost
$ 0.58
5,750
$ 3,335.00
320,000
$ 185,600.00
TOTAL
TOTAL
$ 24,725.00
TOTAL
$ 582,400.00
Reconciliation
Cost to be accounted for
Beginning Work In Progress:
Material
$ 67,500.00
Conversion Cost
$ 29,100.00
$ 96,600.00
Cost incurred during period:
Material
$ 350,690.00
Conversion Cost
$ 159,835.00
$ 510,525.00
Total Cost to be accounted for
$ 607,125.00
Cost accounted for
Cost of Units transferred
Equivalent Units
Cost per Equivalent Units
Cost accounted for
Material
320,000
$ 1.24
$ 396,800.00
Conversion Cost
320,000
$ 0.58
$ 185,600.00
$ 582,400.00
Cost of ending WIP
Equivalent Units
Cost per Equivalent Units
Cost accounted for
Material
17,250
$ 1.24
$ 21,390.00
Conversion Cost
5,750
$ 0.58
$ 3,335.00
$ 24,725.00
Total Cost accounted for
$ 607,125.00
Units
Reconciliation of Units
A
Opening WIP
63,000
B
Introduced
280,000
C=A+B
TOTAL
343,000
D
Transferred
320,000
E=C-D
Closing WIP
23,000
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