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. (Do not round your intermediate calculations.)

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., Weighted Average Method Equivalent Unit of Production Material Conversion 1) Units transfer to next department=(69000+340000-15000) 394000 394000 Add: Ending WIP Material(15000*80%) 12000 Conversion(15000*20%) 3000 Equivalent Units of Production 406000 397000 Cost Per Equivalent Units Material Conversion 2) Cost of beginning WIP $    78,000.00 $       15,300.00 Cost added during the period $ 405,140.00 $       83,950.00 Total Cost $ 483,140.00 $       99,250.00 Equivalent Units of Production 406000 397000 Cost Per Equivalent Units=($483140/406000),($99250/397000) $               1.19 $                  0.25 Cost of Ending WIP 3) Material Conversion Ending WIP Inventory=(A) 12000 3000 Cost per Equivalent Units=(B) $               1.19 $                  0.25 Cost of Ending WIP=(A)*(B) $    14,280.00 $             750.00 Cost of units completed and transferred Material Conversion Units transfer to next department 394000 394000 Cost per Equivalent Units $               1.19 $                  0.25 Cost of units completed and transferred $ 468,860.00 $       98,500.00 Cost reconciliation report 4) Cost to be accounted for Beginning WIP $    78,000.00 $       15,300.00 (Given) Cost added during the month $ 405,140.00 $       83,950.00 (Given) Total cost to be accounted for $ 483,140.00 $       99,250.00 Cost of Closing WIP $    14,280.00 $             750.00       Cost of units completed and transferred $ 468,860.00 $       98,500.00 Total cost to be accounted for $ 483,140.00 $       99,250.00

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