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		63,000
Pounds started into production during May		280,000
Pounds completed and transferred out		?
Pounds in process, May 31:       materials 75% complete; conversion 25% complete		23,000
Cost data:
Work in process inventory, May 1:
Materials cost	$	67,500
Conversion cost	$	29,100
Cost added during May:
Materials cost	$	350,690
Conversion cost	$	159,835

The company uses the weighted-average method. Required: 1. Compute the equivalent units of production. Materials Conversion Equivalent units of production

2.	Compute the costs per equivalent unit for the month. (Round your answers to 2 decimal places.)

	Materials Conversion Cost per equivalent unit

Determine the cost of ending work in process inventory and of the units transferred out to the next department. (Round your intermediate calculation to 2 decimal places.)
	Total Cost of ending work in process inventory Cost of units completed and transferred out

4. Prepare a cost reconciliation report for the month. (Round your intermediate calculations to 2 decimal places.)
	Cost Reconciliation Costs to be accounted for: Total cost to be accounted for Costs accounted for as follows: Total cost accounted for

Answer 1

	Beginning Work in process			63,000	Completed & Transferred			320,000
	Started into production			280,000	Ending work in process			23,000
	units to be accounted			343,000	units accounted for			343,000
1)	Equivalent units of production
				units	% materials	Materials	% CC	CC
	Completed & Transferred			320,000	100%	320,000	100%	320,000
	Ending work in process			23,000	75%	17250	25%	5750
	Equivalent units of production					337,250		325,750
2)	Cost per equivalent
					Materials	CC	Total
	Cost in beginning work in process				67,500	29,100	96,600
	Cost added during the year				350,690	159,835	510,525
	total cost				418,190	188,935	607,125
	Equivalent units				337,250	325,750
	cost per Equivalent unit				1.24	0.58	1.82
								total
3)	Cost of ending work in process inventory (17250*1.24+5750*.58)=							24725
	cost of units completed & transferred out (320,000*1.82)=							582400
4)		Cost Reconcilation
	Costs to be accounted for
	Beginning work in process					96,600
	cost added during the year					510,525
	Costs to be accounted for					607,125
	Cost Accounted for as follows:
	Cost of ending work in process inventory					24725
	cost of units completed & transferred out					582400
	total cost accounted for					607125