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: Production data: Pounds in process, May 1; materials 100% complete; conversion 90% complete 83,000 Pounds started into production during May 480,000 Pounds completed and transferred out ? Pounds in process, May 31: materials 75% complete; conversion 25% complete 43,000 Cost data: Work in process inventory, May 1: Materials cost $ 128,300 Conversion cost $ 53,900 Cost added during May: Materials cost $ 666,940 Conversion cost $ 296,395 The company uses the weighted-average method. Required: 1. Compute the equivalent units of production. 2. Compute the costs per equivalent unit for the month. (Round your answers to 2 decimal places.) 3. 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.) 4. Prepare a cost reconciliation report for the month. (Round your intermediate calculations to 2 decimal places.)

Explanation / Answer

Solution 1:

Solution 2:

Solution 3:

Solution 4:

Computation of Equivalent unit of Production - Weighted Average - First Department Particulars Physical Units Material Conversion Unit completed & Transferred out (83000+480000-43000) 520000 520000 520000 Closing WIP: 43000 Material (75%) 32250 Conversion (25%) 10750 Equivalent units of production 563000 552250 530750

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