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: 76,000 410,000 36,000 Production data Pounds in process, May 1; materials 100% complete; conversion 901 complete Pounds started into production during May Pounds completed and transferred out Pounds in process, May 31, materials 601 complete conversion 404 complete Cost data: Work in process inventory, May 11 Materials cost Conversion cost Cost added during May Materials cost Conversion cost $117.900 $ 53,600 $613,080 $ 294,700 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

		Material	Conversion	Total
1)	Equivalent Units	471,600	464,400
2)	Cost per equivalnet unit	1.55	0.75
3)	Cost of Ending WIP	33,480	10,800	44,280
4)	Cost of Transferred Units	697,500	337,500	1,035,000
5)	Cost Reconciliation Report
	Costs to be acounted for:
		Total	Material	Conversion
	Costs in beginning inventory	171,500	117,900	53,600
	Cost added dueing the year	907,780	613,080	294,700
	Total cost to account for	1,079,280	730,980	348,300
	Equivalent Units from above		471600	464400
	Cost per equivalnet unit		1.55	0.75
		Total	Material	CC
	Cost Accounted for
	Units completed and transfer	1,035,000	697,500	337,500
	Units in ending inventory	44,280	33,480	10,800
	Total Cost Accounted for	1,079,280	730,980	348,300
	Builder products inc.
	Production Cost Report
		Actual Units
	Caluclation of Physical UNITS:
	Units in begining inventory	76000
	Units started during the period	410000
	Units to be accounted for	486000
		Actual Units	Equivalent Units
			Material	Conversion
	Units Completed and Transferred	450000	450000	450000
	Units in ending inventory	36000	21600	14400
	Total accounted for	486000	471600	464400