Question
In: Accounting
Builder Products, Inc., manufactures a caulking compound that goes through three processing stages prior to completion....
|
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 |
85,000 | |
| Pounds started into production during May | 500,000 | |
| Pounds completed and transferred out | ? | |
| Pounds
in process, May 31: materials 80% complete; conversion 20% complete |
45,000 | |
| Cost data: | ||
| Work in process inventory, May 1: | ||
| Materials cost | $ | 135,700 |
| Conversion cost | $ | 22,000 |
| Cost added during May: | ||
| Materials cost | $ | 705,260 |
| Conversion cost | $ | 120,740 |
| The company uses the weighted-average method. |
| Required: |
| 1. | Compute the equivalent units of production. |
| 2. |
Compute the costs per equivalent unit for the month. (Round your answers to 2 decimal places.) |
| 3. |
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.) |
| 4. |
Prepare a cost reconciliation report for the month. |
Solutions
Expert Solution
|
Units completed and transferred out |
|
|
Opening WIP |
85000 |
|
Units started into production |
500000 |
|
Closing WIP |
-45000 |
|
Units completed and transferred out |
540000 |
Answer to Question No. 1
|
Equivalent units of production |
|||
|
Materials |
Conversion |
||
|
Units completed and transferred out |
540000 |
540000 |
|
|
Closing WIP |
|||
|
Materials (45000 X 80%) |
36000 |
||
|
Conversion (45000 X 20%) |
9000 |
||
|
Equivalent units of production |
576000 |
540000 |
|
|
Answer to Question No. 2 |
|||
|
Cost per equivalent unit |
|||
|
Materials |
Conversion |
||
|
Cost of opening WIP |
135700 |
22000 |
|
|
Cost added during the period |
705260 |
120740 |
|
|
Total cost (a) |
840960 |
142740 |
|
|
Equivalent units of production (b) |
576000 |
540000 |
|
|
Cost per equivalent unit (a/b) |
1.46 |
0.26 |
|
|
Answer to Question No. 3 |
|||
|
Materials |
Conversion |
Total ($) |
|
|
Ending WIP Inventory |
36000 |
9000 |
|
|
Cost per equivalent unit |
1.46 |
0.26 |
|
|
Total cost of ending WIP inventory |
52560 |
2379 |
54939 |
|
Units completed and transferred out |
540000 |
540000 |
|
|
Cost per equivalent unit |
1.46 |
0.26 |
|
|
Total cost of units completed and transferred |
788400 |
142740 |
931140 |
ekkarill92 answered 2 years agoRelated Solutions
Builder Products, Inc., manufactures a caulking compound that goes through three processing stages prior to completion....
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:...
Builder Products, Inc., manufactures a caulking compound that goes through three processing stages prior to completion....
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
85,000
Pounds
started into production during May
500,000
Pounds
completed and transferred out
?
Pounds
in process, May 31:
materials 80% complete;
conversion 20% complete
45,000
Cost data:
Work in
process inventory, May 1:...
Builder Products, Inc., manufactures a caulking compound that goes through three processing stages prior to completion....
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
77,000
Pounds started into production during
May
420,000
Pounds completed and transferred out
?
Pounds in process, May 31:
materials 80% complete;
conversion 20% complete
37,000
Cost
data:
Work in process inventory, May 1:...
Builder Products, Inc., manufactures a caulking compound that goes through three processing stages prior to completion....
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
77,000
Pounds started into production during
May
420,000
Pounds completed and transferred out
?
Pounds in process, May 31:
materials 80% complete;
conversion 20% complete
37,000
Cost
data:
Work in process inventory, May 1:...
Builder Products, Inc. manufactures a caulking compound that goes through three processing stages prior to completion....
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:
Units in process, May 1: 100% complete as to materials and 80%
complete as to labour and overhead
15,800
Units started into production during May
118,000
Units completed and transferred out
108,000
Units in process, May 31: 60% complete as to materials and 20%
complete as to labour and...
Builder Products, Inc. manufactures a caulking compound that goes through three processing stages prior to completion....
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:
Units in process, May 1: 100% complete as to materials and 80%
complete as to labour and overhead
15,600
Units started into production during May
116,000
Units completed and transferred out
106,000
Units in process, May 31: 60% complete as to materials and 20%
complete as to labour and...
Builder Products, Inc., manufactures a caulking compound that goes through three processing stages prior to completion....
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
90,000
Pounds started into production during
May
550,000
Pounds completed and transferred out
?
Pounds in process, May 31:
materials 70% complete;
conversion 30% complete
50,000
Cost
data:
Work in process inventory, May 1:...
Builder Products, Inc., manufactures a caulking compound that goes through three processing stages prior to completion....
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 83,000 Pounds started into
production during May 480,000 Pounds completed and transferred out
? Pounds in process, May 31: materials 75% complete; conversion 25%
complete 43,000 Cost data: Work in process inventory, May 1:
Materials cost $ 128,300...
Builder Products, Inc., manufactures a caulking compound that goes through three processing stages prior to completion....
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
69,000
Pounds
started into production during May
340,000
Pounds
completed and transferred out
?
Pounds
in process, May 31:
materials 80% complete;
conversion 20% complete
15,000
Cost data:
Work in
process inventory, May 1:...
Builder Products, Inc. manufactures a caulking compound that goes through three processing stages prior to completion....
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:
Units in process, May 1: 100% complete as to materials
and 80% complete as to labour and overhead
16,700
Units started into production during May
127,000
Units completed and transferred out
117,000
Units in process, May 31: 60% complete as to materials
and 20% complete as to labour and...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- Please explain your view of the most difficult aspect of Customs Compliance?
- You are required to write an interactive program that prompts the user for seven (7) real...
- Describe in detail the five-forces model of industry competition. What causes each of the forces to...
- Java Programming. I'm writing this in an IDE called Eclipse. If you could also use comments...
- Scenario: You are a departmental manager in a large community hospital in an urban area. Your...
- Need to answer the following 3 questions from "The Sixties, AMerican Yawp" (just google, you will...
- Write a c++ program to load two column of numbers, do arithmetic operations to the data...
ADVERTISEMENT