Builder Products, Inc., manufactures a caulking compound that goes through three
ID: 2368039 • Letter: B
Question
Builder Products, Inc., 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 follows:
Pounds in process, May 1; materials 100% complete;
conversion 77% complete
Pounds in process, May 31; materials 62% complete;
conversion 21% complete
Builder Products, Inc., 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 follows:
Explanation / Answer
Pounds completed and transferred out = 111,000 + 10,400 – 13,100 = 108,300
Flow of production
Physical units
Equivalent units - direct materials
Equivalent units – conversion costs
WIP, beginning
10,400
Started during current period
111,000
To account for
121,400
Completed and transferred out
108,300
108,300
108,300
WIP, ending
13,100
8,122
2,751
Accounted for
121,400
Equivalent units of work done
116,422
111,051
Total Production costs
Direct materials
Conversion costs
WIP, beginning
$9,800
$2,200
$7,600
Costs added during current period
$245,300
$148,500
$96,800
Total costs to account for
$255,100
$150,700
$104,400
Costs incurred to date
$150,700
$104,400
Equivalent units
116,422
111,051
Cost per equivalent unit
$1.29 (rounded)
$0.94 (rounded)
Assignment of costs:
Completed and transferred out
$140,186.65
$101,813.76
WIP, ending
$10,513.35
$2,586.24
WIP ending inventory:
Direct materials $10,513.35 (8122*$150,700/116,422)
Conversion costs: $2,586.24 (2751*$104,400/111,051)
Flow of production
Physical units
Equivalent units - direct materials
Equivalent units – conversion costs
WIP, beginning
10,400
Started during current period
111,000
To account for
121,400
Completed and transferred out
108,300
108,300
108,300
WIP, ending
13,100
8,122
2,751
Accounted for
121,400
Equivalent units of work done
116,422
111,051
Total Production costs
Direct materials
Conversion costs
WIP, beginning
$9,800
$2,200
$7,600
Costs added during current period
$245,300
$148,500
$96,800
Total costs to account for
$255,100
$150,700
$104,400
Costs incurred to date
$150,700
$104,400
Equivalent units
116,422
111,051
Cost per equivalent unit
$1.29 (rounded)
$0.94 (rounded)
Assignment of costs:
Completed and transferred out
$140,186.65
$101,813.76
WIP, ending
$10,513.35
$2,586.24
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