Builder Products, Inc., manufactures a caulking compound that goes through three
ID: 2421810 • 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:
Compute the costs per equivalent unit for the month. (Round your answers to 2 decimal places.)
Determine the cost of ending work in process inventory and of the units transferred out to the next department. (Round your intermediate calculation to 2 decimal places.)
Prepare a cost reconciliation report for the month.
Cost ReconciliationCosts to be accounted for:
Cost of beginning work in process inventory
Costs added to production during the period
Total cost to be accounted for$0
Costs accounted for as follows:Cost of ending work in process inventory
Cost of units completed and transferred out
Total cost accounted for$0
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:
Explanation / Answer
1 . opening work in process + units started in = unit completed and transferred + ending work in progress
62,000 + 270,000 = unit completed and transferred + 22,000
62000 + 270000 - 22000 = unit completed and transferred
unit completed and transferred = 310000 units
Equivalent units of porduction
Material
units percentage completion equivalent units
unit completed and transferred 310000 100% 310000
ending work in progress 22000 70% 15400
325400
conversion
units percentage completion equivalent units
unit completed and transferred 310000 100% 310000
ending work in progress 22000 30% 6600
316600
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