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		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.

  

No.4 answer plz !!!

Answer 1

1. Compute the equivalent units of production.

	Material	Conversion
Transfer to the next department	540000	540000
Ending Work in progress
Material =45000x80%	36000
Conversion =45000x20%		9000
Equivalent unit of production	576000	549000

	Material	Conversion
Equivalane unit of production	576000	549000

Working

Units transferred to the next department

=85000+500,000-45000

=540,000

________________________________________________________

2. Compute the costs per equivalent unit for the month.

	Material	Conversion
Cost of beginning Work in progress	135700	22000
Add: Cost added during the year	705260	120740
Total Cost (a)	840960	142740
Equivalent unit of production (b)	576000	549000
Cost per equivalent unit (a/b)	1.46	0.26

	Material	Conversion
Cost per equivalent unit (a/b)	1.46	0.26

_______________________________________________________

3. Determine the cost of ending work in process inventory and of the units transferred out to the next department.

	Material	Conversion	total
Cost accounted for
Units completed and transferred out	788400	140400	928800
(540000*1.46) and (540000*0.26)
Ending work in progress	52560	2340	54900
Material =36000*1.46
Conversion=9000*0.26

___________________________________________

4. Prepare a cost reconciliation report for the month.

Cost reconciliation
Cost of beginning work in progress inventory (135700+22000)	157700
Costs added to production during the period (705260+120740)	826000
Total cost to be accounted for	983700
Costs accounted for as follows:
Cost of ending work in process inventory (as calculated above)	54900
Cost of units completed and transferred out (as calculated above)	928800
Total cost accounted for	983700