Builder Products, Inc., uses the weighted-average method in its process costing
ID: 2393871 • 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 60,000 Pounds started into production during May 250,000 Pounds completed and transferred out ? Pounds in process, May 31; materials 60% complete;
conversion 40% complete 20,000 Cost data: Work in process inventory, May 1: Materials cost $ 59,000 Conversion cost $ 23,400 Cost added during May: Materials cost $ 306,420 Conversion cost $ 128,580
Explanation / Answer
1. Compute equivalent units of production for materials and conversion in May.
2. Compute costs per equivalent unit for materials and conversion for May.
3. Compute cost of ending work in process inventory for materials, conversion, and in total for May.
4. Compute cost of units transferred out to the Mixing Department for materials, conversion, and in total for May
5. Prepare a cost reconciliation report for May
Whole unit % EUP-material % EUP-conversion Unit transferred out 290000 100% 290000 100% 290000 Ending work in process 20000 60% 12000 40% 8000 Equivalent unit of production 310000 302000 298000Related Questions
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