Builder Products, Inc., uses the weighted-average method in its process costing

Question

Builder Products, Inc., uses the weighted-average method in its process costing system. It 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 1008 complete; rsion 90% complete 63,000 280,000 Pounds started into production during May Pounds completed and transferred out Pounds in process, May 31; materials 75% complete ; conversion 25% complete 23,000 Cost data: Nork in process inventory, May 1: Materials cost Conversion cost Cost added during May Materials cost Conversion cost $67,500 $ 29,100 $350, 690 $159, 835 Required: 1. Compute the equivalent units of production for materials and conversion for May. 2. Compute the cost per equivalent unit for materials and conversion for May. 3. Compute the cost of ending work in process inventory for materials, conversion, and in total for May. 4. Compute the cost of units transferred out to the next department for materials, conversion, and in total for May. 5. Prepare a cost reconciliation report for May. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Compute the equivalent units of production for materials and conversion for May. Equivalent units of production

Explanation / Answer

Beginning WIP inventory 63000 Add: Units started during May 280000 Less: Ending inventory 23000 Units completed and transferred 670000 1 Equivalent Units Whole units Materials Conversion Beginning WIP inventory 74000 74000 74000 Started & completed 356000 356000 356000 Ending inventory 34000 23800 10200 Units accounted for 464000 453800 440200 Materials Conversion Equivalent units of production 453800 440200 2 Cost Data: Total Material Conversion Beginning WIP inventory 142800 98800 44000 Current costs              755960 513830 242130 Total cost to account for 898760 612630 286130 Divided by Equivalent units 453800 440200 Cost per Equivalent unit                 2.00 1.35 0.65 Materials Conversion Cost per Equivalent unit                 1.35 0.65 3 Cost Assignment: Ending Work in process: Material 32130 Conversion 6630 Total Ending Work in process 38760 4 Cost of units completed and transferred Material 580500 Conversion 279500 Total 860000 5 Cost to be accounted for: Beginning WIP inventory 142800 Current costs              755960 Total costs to be accounted for 898760 Cost accounted for as follws: Cost of units completed and transferred 860000 Cost of ending work in process 38760 Total costs accounted for 898760

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