Question

Problem 4-16A Comprehensive Problem-Weighted-Average Method [LO4-2, LO4-3, LO4-4, LO4-5]

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:
Materials cost	$	78,000
Conversion cost	$	15,300
Cost added during May:
Materials cost	$	405,140
Conversion cost	$	83,950

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. (Do not round your intermediate calculations.)

  

Answer 1

1
	Materials	Conversion costs
Units completed and transferred	394000	394000
Work in Process ending	12000	3000
Equivalent units of production	406000	397000
2
	Materials	Conversion costs
Total costs	483140	99250
Equivalent units of production	406000	397000
Costs per equivalent unit	1.19	0.25
3
Cost of ending work in process inventory:
Materials	14280	=12000*1.19
Conversion costs	750	=3000*0.25
Total	15030
Cost of the units completed and transferred:
Materials	468860	=394000*1.19
Conversion costs	98500	=394000*0.25
Total	567360
4
Costs to account for:
Cost of Work in process inventory, May 1	93300
Total Cost added during May	489090
Total Costs to account for	582390
Costs accounted for:
Cost of the units completed and transferred	567360
Cost of Work in process inventory, May 31	15030
Total Costs accounted for	582390