Question

(PLEASE COPY PASTE THIS TABLE AND ANSWER IN THE BLANKS)

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 overhead		?
Cost data:
Work-in-process inventory, May 1:
Materials cost	$	2,850
Labour cost		3,760
Overhead cost		7,700
Cost added during May:
Materials cost		194,000
Labour cost		37,600
Overhead cost		90,400

Materials are added at several stages during the cooking process, whereas labour and overhead costs are incurred uniformly. The company uses the weighted average cost method. The company combines labour and overhead into a single cost category—conversion cost.

Required:

Prepare a production report for the cooking department for May. Use the following three steps in preparing your report:

1. Prepare a quantity schedule and a computation of equivalent units.

	Quantity Schedule
Units to be accounted for:
Work in process, May 1
Units brought into production and fully completed during the month
Total units	0

	Equivalent Units (EU) Units Materials Labour Overhead Units accounted for as follows: Transferred out Units brought into production and fully completed during the month Total units and equivalent units of production 0 0 0 0

  

2. Compute the costs per equivalent unit for the month. (Round your answers to 3 decimal places.)

	Materials Labour Overhead Costs per equivalent unit

3. Using the data from parts (1) and (2), prepare a cost reconciliation. (Round "Cost per equivalent unit" to 3 decimal places and the rest to the nearest dollar amount.)

Note: There is difference of "$28" in both the values due to rounding and we feel a note which reads: "Due to rounding, your "Cost accounted for" may not be equal to "Cost to account for"".

	Equivalent Units (EU) Total Cost Materials Labour Overhead Cost accounted for as follows: Work in process, May 31: Total work in process 0 Total cost $0

4. Prepare a production report for the cooking department for May. Assuming the company uses the FIFO method. Follow parts (1) to (3). (Leave no cells blank, enter "0" wherever required. Round "Cost per equivalent unit" to 3 decimal places and the rest to the nearest dollar amount.)

  
Quantity Schedule and Equivalent Units

	Quantity Schedule Units to be accounted for: Total units 0

	Equivalent Units (EU) Units Materials Labour Overhead Units accounted for as follows: Total units and equivalent units of production 0 0 0 0

Cost per Equivalent Unit

	Materials Labour Overhead Costs per equivalent unit

Cost Reconciliation

Note: There is difference of "$28" in both the values due to rounding and we feel a note which reads: "Due to rounding, your "Cost accounted for" may not be equal to "Cost to account for"".

	Equivalent Units (EU) Total Cost Materials Labour Overhead Cost accounted for as follows: Prior period cost in Work in Process, May 1 $14,310 Cost incurred during May: To complete units in Work in Process, May 1 Total 0 To partially complete units in Work in Process, May 31 Total 0 Total cost $14,310 Cost transferred out, May 31 $14,310

Answer 1

Answer 1 to 3

Quantity Schedule
Units to be accounted for:
Work in process, May 1	16,700
Units brought into production and fully completed during the month	127,000
Total units	143,700
		EU	EU	EU
Units accounted for as follows:	Units	Materials	Labour	Overhead
Transferred out	117,000	117,000	117,000	117,000
Ending inventory in WIP	26,700	16,020	5,340	5,340
Total units and equivalent units of production	143,700	133,020	122,340	122,340
Answer 2		Materials	Labour	Overhead
Costs per equivalent unit		1.480	0.338	0.802
Answer 3	Total	Materials	Labour	Overhead
Cost accounted for as follows:
Cost transferred out, May 31	306,540	173,160	39,546	93,834
Cost of Work in process, May 31	29,798	23,710	1,805	4,283
Total cost	336,338

Calculation

Answer 4

Quantity Schedule
Units to be accounted for:
Work in process, May 1	16,700
Units brought into production and fully completed during the month	127,000
Total units	143,700
		EU	EU	EU
Units accounted for as follows:	Units	Materials	Labour	Overhead
units in beginning WIP inventory	16,700	-	3,340	3,340
Units in Started and completed	100,300	100,300	100,300	100,300
units in ending WIP inventory	26,700	16,020	5,340	5,340
Total units and equivalent units of production	143,700	116,320	108,980	108,980
		Materials	Labour	Overhead
Costs per equivalent unit		1.668	0.345	0.830
Cost Reconciliation	Total	Materials	Labour	Overhead
Prior period cost in Work in Process, May 1	14,310	2,850	3,760	7,700
Cost incurred during May:
To complete units in Work in Process, May 1	3,924	0	1152	2772
Total	18,234	2,850	4,912	10,472
Cost of units in Started and completed	285,153	167300	34604	83249
Cost transferred out, May 31	303,387	170,150	39,516	93,721
To partially complete units in Work in Process, May 31	32,995	26721	1842	4432
Total cost	336,382

Calculation