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 73,88 380,000 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; materials sex complete; conversion 20% complete Cost data: Work in process inventory, May 1: Materials cost Conversion cost Cost added during May: Materials cost Conversion cost 33,000 $111,600 $ 55,800 $589,320 $306,810 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 Prepare a cost reconciliation report for Mary. (Round your intermediate calculations to 2 decimal places.) Cost Reconciation Costs to be counted for Total cost to be about < Required 4 < Prev

Answer 1

1) Equivalent unit

	Direct material	Conversion
Unit transferred out	420000	420000
Ending WIP	26400	6600
Equivalent unit	446400	426600

2) Cost per equivalent unit

	Material	Conversion
Beginning WIP	111600	55800
Cost added	580320	306810
Total Cost	691920	362610
Equivalent unit	446400	426600
Cost per equivalent unit	1.55	0.85

3) Cost of ending work in process

	Material	Conversion	Total
Cost of ending work in process	26400*1.55 = 40920	5610	46530

4) Cost of unit transferred out

	Material	Conversion	Total
Cost of unit transferred out	651000	357000	1008000

5) cost reconciliation

Cost to be accounted for
Beginning WIP	167400
Cost added	887130
Total Cost to be accounted for	1054530
Cost accounted as
Cost of unit transferred out	1008000
Cost of ending WIP	46530
Total Cost accounted as	1054530