Builder Products, Inc., manufactures a caulking compound that goes through three

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.

  

PLEASE ANSWER USING THESE NUMBERS

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

Calculation of pounds transferred out = opening pounds + pounds entered - closing pounds

= 67000+320000-27000 = 360000 pounds

1. Calculation of equivalent pounds:

1. Calculation of equivalent pounds:

Particulars Material Conversion pounds transferred out(on which 100% work has been done) 360000 360000 Add: Closing work in process of pounds (material 75%, Conversion 25%) 20250 6750 Equivalent units of production (a) 380250 366750 2. Calculation of unit cost per equivalent unit: Opening cost $78500 $20300 Add: Cost added $408220 $111730 Total Cost (b) $486720 $132030 per unit cost of equivalent unit (b/a) $1.28 $0.36 3. Cost of closing inventory Material Content ($1.28*20250) (c) 25920 Conversion cost content ($0.36*6750) (d) 2430 Total cost of closing work in process (c+d) 28350 Cost of units transferred out: Material content ($1.28*360000) (e) 460800 Conversion cost content (0.36*360000) (f) 129600 Total Cost (e+f) 590400 4. Reconciliation of cost: Cost of closing work in process 28350 Cost of transferred out units 590400 Total Cost 618750 Cost data: Cost of opening work in process (g) 78500 20300 Cost of transferred units (h) 408220 11730 Total cost (g+h) 618750

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