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:

Production data:
Pounds in process, May 1; materials 100% complete; conversion 90% complete		81,000
Pounds started into production during May		460,000
Pounds completed and transferred out		?
Pounds in process, May 31; materials 80% complete; conversion 20% complete		55,000
Cost data:
Work in process inventory, May 1:
Materials cost	$	158,200
Conversion cost	$	50,500
Cost added during May:
Materials cost	$	822,300
Conversion cost	$	277,520

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..... Please explain how to solve this? Thank you!

1. Compute the equivalent units of production for materials and conversion for May.

	Materials Conversion Equivalent units of production

2. Compute the cost per equivalent unit for materials and conversion for May. (Round your answers to 2 decimal places.)

	Materials Conversion Cost per equivalent unit

3. Compute the cost of ending work in process inventory for materials, conversion, and in total for May. (Round your intermediate calculations to 2 decimal places.)

	Materials Conversion Total Cost of ending work in process inventory

4. Compute the cost of units transferred out to the next department for materials, conversion, and in total for May. (Round your intermediate calculations to 2 decimal places.)

	Materials Conversion Total Cost of units completed and transferred out

5. Prepare a cost reconciliation report for May. (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

1) Equivalent unit :

	Whole unit	%	EUP-material	%	EUP-conversion
Units transferred out	486000	100%	486000	100%	486000
Ending work in process	55000	80%	44000	20%	11000
Total	541000		530000		497000

2) Calculate cost per equivalent unit:

	Material	Conversion
Beginning work in process	158200	50500
Cost added	822300	277520
Total cost	980500	328020
Equivalent unit	530000	497000
Cost per equivalent unit	1.85	0.66

3) Calculate cost of ending work in process

	Material	Conversion	Total
Cost of ending work in process	44000*1.85 = 81400	11000*.66 = 7260	88660

4_) Calculate cost of units transferred out

	Material	Conversion	Total
Cost of units transferrred out	486000*1.85 = 899100	486000*.66 = 320760	1219860

5) Cost reconciliation :

Cost to be accounted for
Beginning work in process	208700
Cost added	1099820
Total cost to be accounted for	1308520
Cost accounted for as follows
Cost of units transferrred out	1219860
Cost of ending work in process	88660
Total cost accounted for	1308520