5 value: 1.00 points Builder Products, Inc., manufactures a caulking compound th

Question

5 value: 1.00 points 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 10,000 100% complete, conversion 80% Pounds started into production during Pounds completed and transferred out complete 100,000 May Pounds in process, May 31 materials 60% complete, conversion 15,000 20% complete Cost data Work in process inventory, May 1 Materials cost Conversion cost $1,500 $ 7,200 Cost added during May: Materials cost 154,500 90,800 Conversion cost The company uses the weighted-average method Required 1. Compute the equivalent units of production Materials Conversion Equivalent units of uction 2. Compute the costs per equivalent unit for the month. (Round your answers to 2 decimal places.) Materials Conversion Cost per uivalent unit 3. Determine the cost of ending work in process inventory and of the units transferred out to the next department. (Do not round your intermediate calculations.) Total Cost of ending work in process invento Cost of units completed and transferred out

Explanation / Answer

Beginning work in process 10,000 Completed & Transferred 95,000 pounds started in production 100,000 ending work in process 15,000 units to be accounted 110,000 units accounted for 110,000 1) Equivalent units of production units % materials % CC Completed & Transferred 95,000 100% 95,000 100% 95,000 ending work in process 15,000 60% 9000 20% 3000 Equivalent units of production 104,000 98,000 2) Cost per unit Materials CC Total Beginning work in proces 1,500 7,200 8700 cost added during the year 154,500 90,800 245,300 total cost 156000 98,000 254000 equivalent units 104,000 98,000 cost per unit 1.50 1.00 2.50 3) cost of ending work in process inventory Materials (9000*1.50) 13500 CC (3000*1) 3000 cost of ending WIP 16500 4) cost of units tranferred out 95000*2.50 237500 5) cost reconcilation report costs to be accouted Beginning WIP 8,700 cost added during the year 245,300 cost to be accounted 254,000 cost accounted for Completed & transferred 16,500 ending WIP 237,500 cost accounted for 254,000

Related Questions

Navigate

• Browse (All)
• Browse 5
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.