Question

help please.

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 75,000 400,000 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 75% complete; conversion 25% complete Cost data: Work in process inventory, May 1: Materials cost Conversion cost Cost added during May: Materials cost Conversion cost 35,000 $102,300 $ 45,600 $531, 800 $250,575 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.

Answer 1

Solution 1:
Equivalent units of production (EUP) - Weighted Average method
	Units	% material	EUP-Materials	% Conversion	EUP- Conversion
Units Completed and transferred out (75000+400000-35000)	440000	100%	440000	100%	440000
units of Ending work in process	35000	75%	26250	25%	8750
Equivalent units of production			466250		448750
SOLUTION 2:
Cost per Equivalent unit:	Material	Conversion
Cost of Beginning Work in Process	$1,02,300	$45,600
Cost added during June	$5,31,800	$2,50,575
Total Costs	$6,34,100	$2,96,175
/Equivalent units of Production	466250	448750
Cost per Equivalent unit of Production	$1.36	$0.66

SOLUTION 3:
Cost of ending work in process	EUP	Cost per EUP	Total Cost
Material	26250	$1.36	$35,700
Conversion	8750	$0.66	$5,775
Total Ending work in process			$41,475

SOLUTION 4:
Cost of Units Transferred Out	EUP	Cost per EUP	Total Cost
Material	440000	$1.36	$5,98,400
Conversion	440000	$0.66	$2,90,400
Total transferred out			$8,88,800

Solution 5:

Cost Reconciliation Report
Particulars	Amount
costs to be accounted for:
Cost of beginning WIP inventory	$1,47,900
Cost added to production	$7,82,375
Total Cost to be accounted for	$9,30,275
Costs accounted for as follows:
Cost of unit transferred out	$8,88,800
Cost of Ending WIP	$41,475
Total cost accounted for	$9,30,275