Builder Products, Inc., uses the weighted-average method in its process costing
ID: 2338965 • 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:
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 62,000 Pounds started into production during May 270,000 Pounds completed and transferred out ? Pounds in process, May 31; materials 70% complete;
conversion 30% complete 22,000 Cost data: Work in process inventory, May 1: Materials cost $ 55,100 Conversion cost $ 26,800 Cost added during May: Materials cost $ 286,570 Conversion cost $ 147,330
Explanation / Answer
Unit transferred out = 62000+270000-22000 = 310000 Units
1) Equivalent unit of material = 310000+(22000*70%) = 325400
Equivalent unit of conversion = 310000+(22000*30%) = 316600
2. Compute the cost per equivalent unit for materials and conversion for May.
Material = (55100+286570)/325400 = 1.05
Conversion = (26800+147330)/316600 = 0.55
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 15400*1.05 = 16170 6600*.55 = 3630 19800Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.