Question

apter 4 Homework Help 13 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 5 10,000 100,000 Production data Pounds in process, May 1: materials 100 complete conversion not completo Pound started into production during May Pounds completed and transferred out Pounds in process, May 31: materials 601 complete conversion 201 complete Contdata: Work in process inventory. May 1 Materials cost -Book 15,000 $ 1.500 $7.200 coat adsod during Mays Materials cost Conversion coat $156,500 $ 90,00 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

Answer 1

Production report using weight Average Method Physical units Units to be accounted for :- Beginning work in process Started into Production Total Units Accounted for 10,000 100,000 110,000 1. Equivalent units for Material and Conversion cost Equivalent Unit Material Conversion cost Physical units 95,000 Units to be accounted for:- Units Completed & transferred out Ending work in Process Total Units 95,000 15,000 110,000 9,000 104,000 95,000 3,000 98,000 Completed and transferred out = Units Started in production + Beginning work in Process - Ending work in process = 100000 + 10000 - 15000=95000 Ending work in Process = Units x Percentage Complete 15000 x 60% 15000 x 20% 2. Cost Per Equivalent Unit Material Conversion Total cost Cost To be accounted For:- Beginning work in process Cost added during month Total Cost $ $ 1,500 $ 154,500 $ 156,000 $ 7,200 $ 90,800 $ 98,000 $ 8,700 (Given) 245,300 (Given) 254,000 (A) Equivalent Units Cost per unit (B) (A)/(B) 104000 1.50 $ 98000 1.00 $ $ 2.50 3. cost of Ending work in Process Ending work in process :- Material Conversion cost Total Cost of Ending Work in Process $ $ 13,500 3,000 (9000 units x $ 1.50) (3000 units x $ 1.00) $ 16,500 4.Cost of Units Transferred out Units Completed & Transferred out:- Material Conversion cost Total Cost of units completed & Transferred out $ $ 142,500 95,000 (95000 units x $ 1.50) |(95000 units x $ 1.00) $ 237,500 5.Cost Reconcilliation report Total cost $ $ $ 8,700 Calculated in step 2 245,300 Calculated in step 2 254,000 Cost accounted for :- Cost of beginning work in process cost added to production during the period Total cost to be accounted for Cost accounted for :- Cost of Units Completed & Transferred out Cost of Ending work in process Total cost to be accounted for $ $ $ 237,500 Calculated in step 4 16,500 Calculated in step 3 254,000