Builder Products, Inc., manufactures a caulking compound that goes through three
ID: 341663 • Letter: B
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 Pounds started into production during May Pounds completed and transferred out Pounds in process, May 31 66,000 310,000 26,000 $ 68,300 materials 70% complete, conversion 30% complete Cost data Work in process inventory, May 1: Materials cost Conversion cost $ 19,300 Cost added during May: Materials cost Conversion cost $ 355,130 $105,930 The company uses the weighted-average methodExplanation / Answer
Statement of Equivalent production Particulars Direct Materials %completion Equivalent mat Conversion %completion Equivalent Conv Total Opening WIP 66,000.00 100% 66,000.00 66,000.00 100% 66,000.00 Units started and completed = 310000- 26000 284,000.00 100% 284,000.00 284,000.00 100% 284,000.00 ending WIP 26,000.00 40% 10,400.00 26,000.00 20% 5,200.00 Equivalent Units 360,400.00 355,200.00 Opening WIP Costs 68,300.00 19,300.00 87,600.00 Current Month Costs 355,130.00 105,930.00 461,060.00 Total costs 423,430.00 125,230.00 548,660.00 Cost per Equivalent units 1.17 0.35 Ending WIP Units 10,400.00 5,200.00 Cost of Ending WIP 12,218.85 1,833.32 14,052.17 Units completed and transferred out 350,000.00 350,000.00 Cost of Units completed and transferred out 411,211.15 123,396.68 534,607.83 Coststo Account for: Opening WIP 87,600.00 CostsTransferred in 461,060.00 Total Coststo Account for 548,660.00 CostsAccounted for Costscompleted and Transferred Out 534,607.83 Ending WIP 14,052.17 Total Costsaccounted for 548,660.00
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