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:

115,800   

Compute the equivalent units of production.

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. (Round your intermediate calculations to 2 decimal places.)

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

Builder Products Inc Details Pounds % Material Equivalent pounds Material % Conversion Equivalent pounds Conversion Opening WIP May 1.              84,000                  100             84,000 90%            75,600 Started into Production May            490,000           472,400          472,000 Total            574,000           556,400          547,600 Output Completed & Transferred out            530,000 100%           530,000 100%          530,000 Cloing WIP May 31.              44,000 60%             26,400 40%            17,600 Total            574,000           556,400          547,600 Total Cost May Details Material Cost Conversion Cost Total Opening WIP May 1.            130,200            21,100           151,300 Incurred in May            676,580          115,800           792,380 Total Cost            806,780          136,900           943,680 Details of Prodcution Equivalent pounds Material Equivalent pounds Conversion Total       1 Equivalent units of production            556,400          547,600 Total Cost            806,780          136,900           943,680       2 Cost Per Pound of Equivalent Prodcution                   1.45                 0.25       3 Cost of Ending WIP Details of Prodcution Equivalent pounds Material Equivalent pounds Conversion Total Equivalent units of production              26,400            17,600 Cost per Equivalent Unit                   1.45                 0.25 Total Cost              38,280               4,400             42,680 Cost of pounds Transferred out Details of Prodcution Equivalent pounds Material Equivalent pounds Conversion Total Equivalent units of production            530,000          530,000 Cost per Equivalent Unit                   1.45                 0.25 Total Cost            768,500          132,500           901,000 Cost Reconciliation Cost to be accounted for   Amt $ Cost of WIP      151,300.00 Cost Incurred in May      792,380.00 Total Cost to be accounted for        943,680.00 Cost Accounted For cost assigned to Transferred units      901,000.00 Cost assigned to closing WIP        42,680.00 Total Cost Accounted For      943,680.00

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