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: | |||
| Units in process, May 1: 100% complete as to materials and 80% complete as to labour and overhead | 16,600 | ||
| Units started into production during May | 126,000 | ||
| Units completed and transferred out | 116,000 | ||
| 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 | $ | 2,800 | |
| Labour cost | 3,680 | ||
| Overhead cost | 7,600 | ||
| Cost added during May: | |||
| Materials cost | 192,000 | ||
| Labour cost | 36,800 | ||
| Overhead cost | 89,200 | ||
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.
2. Compute the costs per equivalent unit for the month. (Round your answers to 3 decimal places.)
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 "$27" 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"".
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
Cost per Equivalent Unit
Cost Reconciliation
Note: There is difference of "$27" 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"".
Solutions
Expert Solution
1 to 3
| Physical units | Material | Labor | Overhead | |
| Work in Process Beginning | 16600 | |||
| Started during the period | 126000 | |||
| To account for | 142600 | |||
| Units transferred | 116000 | 116000 | 116000 | 116000 |
| Work in Process Ending | 26600 | 15960 | 5320 | 5320 |
| Accounted for | 142600 | |||
| Equivalent units | 131960 | 121320 | 121320 | |
| Material | Labor | Overhead | Total | |
| Cost of Beginning Work in Process | $ 2,800 | $ 3,680 | $ 7,600 | $ 14,080 |
| Cost added during the period | $ 192,000 | $ 36,800 | $ 89,200 | $ 318,000 |
| Total Cost to account for | $ 194,800 | $ 40,480 | $ 96,800 | $ 332,080 |
| Equivalent units of Production | 131960 | 121320 | 121320 | |
| Cost per equivalent unit | $ 1.476 | $ 0.334 | $ 0.798 | $ 2.608 |
| Material | Labor | Overhead | Total | |
| Units Completed and transferred out | ||||
| Units transferred to next department | 116000 | 116000 | 116000 | |
| Cost per equivalent unit | $ 1.476 | $ 0.334 | $ 0.798 | |
| Cost of units transferred out | $ 171,216 | $ 38,744 | $ 92,568 | $ 302,528 |
| Material | Labor | Overhead | Total | |
| Ending work in Process Inventory | ||||
| Equivalent units of Production | 15960 | 5320 | 5320 | |
| Cost per equivalent unit | $ 1.476 | $ 0.334 | $ 0.798 | |
| Cost of Ending work in Process Inventory | $ 23,557 | $ 1,777 | $ 4,245 | $ 29,579 |
| Total Costs Accounted for | $ 194,773 | $ 40,521 | $ 96,813 | $ 332,107 |
| Reconciliation | ||||
| Costs to be accounted for : | ||||
| Cost of beginning work in process inventory | $ 14,080 | |||
| Costs added to the production during the year | $ 318,000 | |||
| Total Costs to be accounted for | $ 332,080 | |||
| Cost of Ending work in Process Inventory | $ 302,528 | |||
| Cost of units transferred out | $ 29,579 | |||
| Total Costs accounted for | $ 332,107 |
4.
| Physical units | Material | Labor | Overhead | |
| Work in Process Beginning | 16600 | |||
| Started during the period | 126000 | |||
| Total Units to account for | 142600 | |||
| Work in Process Beginning | 16600 | 0 | 3320 | 3320 |
| Units started and completed | 99400 | 99400 | 99400 | 99400 |
| Units transferred to next department | 116000 | 99400 | 102720 | 102720 |
| Ending Work in Process : | 26600 | 15960 | 5320 | 5320 |
| Total Units Accounted for | 142600 | |||
| Equivalent units | 115360 | 108040 | 108040 | |
| Material | Labor | Overhead | Total | |
| Cost added during the period | $ 192,000 | $ 36,800 | $ 89,200 | $ 318,000 |
| Equivalent units of Production | 115360 | 108040 | 108040 | |
| Cost per equivalent unit | $ 1.664 | $ 0.341 | $ 0.826 | $ 2.831 |
| Material | Labor | Overhead | Total | |
| Units Completed and transferred out | ||||
| Cost of Work on Beginning Work in Process | $ 2,800 | $ 3,680 | $ 7,600 | $ 14,080 |
| Cost of work on Beginning Work in Process | $ - | $ 1,132 | $ 2,742 | $ 3,874 |
| Total Cost of Beginning WIP | $ 2,800 | $ 4,812 | $ 10,342 | $ 17,954 |
 ekkarill92 answered 1 year agoRelated SolutionsBuilder 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
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:...
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