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:
Units in process, May 1: 100% complete as to materials and 80% complete as to labour and overhead		15,900
Units started into production during May		119,000
Units completed and transferred out		109,000
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	$	2,450
Labour cost		3,120
Overhead cost		6,900
Cost added during May:
Materials cost		178,000
Labour cost		31,200
Overhead cost		80,800

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:
Total Units

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

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

	Materials	Labour	Overhead
Cost 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 "$46" 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

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

Cost per Equivalent Unit

	Materials	Labour	Overhead
Cost per equivalent unit

Cost Reconciliation

Note: There is difference of "$46" 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:
Pior period cost in Work in Process, May 1	$12,470
Cost incurred during May:
To complete units in Work in Process, May 1
Total
To partially complete units in Work in Process, May 31
Total
Total Cost
Cost transferred out, May 31

Answer 1

Weighted Average

	Physical units	Material	Labor	Overhead
Units to account for
Work in Process Beginning	15900
Units transferred from framing department	119000
Total units to account for	134900
Units Accounted for
Completed and transferred	109000	109000	109000	109000
Work in Process Ending	25900	15540	5180	5180
Total Units Accounted for	134900
Equivalent units		124540	114180	114180
	Material	Labor	Overhead	Total
Cost of Beginning Work in Process	$             2,450	$            3,120	$          6,900	$          12,470
Cost added during the period	$        178,000	$          31,200	$        80,800	$       290,000
Total Cost to account for	$        180,450	$          34,320	$        87,700	$       302,470
Equivalent units of Production	124540	114180	114180
Cost per equivalent unit	$            1.449	$            0.301	$          0.768	$            2.518
	Material	Labor	Overhead	Total
Units Completed and transferred out
Units transferred to next department	109000	109000	109000
Cost per equivalent unit	$            1.449	$            0.301	$          0.768
Cost of units transferred out	$        157,941	$          32,809	$        83,712	$       274,462
	Material	Labor	Overhead	Total
Ending work in Process Inventory
Equivalent units of Production	15540	5180	5180
Cost per equivalent unit	$            1.449	$            0.301	$          0.768
Cost of Ending work in Process Inventory	$          22,517	$            1,559	$          3,978	$         28,054
Total Costs Accounted for	$        180,458	$          34,368	$        87,690	$       302,516
Reconciliation
Costs to be accounted for :
Cost of beginning work in process inventory	$          12,470
Costs added to the production during the year	$        290,000
Total Costs to be accounted for	$        302,470
Cost of Ending work in Process Inventory	$          28,054
Cost of units transferred out	$        274,462
Total Costs accounted for	$        302,516

FIFO

	Physical units	Material	Labor	Overhead
Work in Process Beginning	15900
Started during the period	119000
Total Units to account for	134900
Work in Process Beginning	15900	0	3180	3180
Units started and completed	93100	93100	93100	93100
Units transferred to next department	109000	93100	96280	96280
Ending Work in Process :	25900	15540	5180	5180
Total Units Accounted for	134900
Equivalent units		108640	101460	101460
	Material	Labor	Overhead	Total
Costs to account for
Beginning Work in Process	$             2,450	$            3,120	$          6,900	$          12,470
Cost added during the period	$        178,000	$          31,200	$        80,800	$       290,000
Total costs to account for	$        180,450	$          34,320	$        87,700	$       302,470
	Material	Labor	Overhead	Total
Cost added during the period	$        178,000	$          31,200	$        80,800	$       290,000
Equivalent units of Production	108640	101460	101460
Cost per equivalent unit	$            1.638	$            0.308	$          0.796	$            2.742
	Material	Labor	Overhead	Total
Units Completed and transferred out
Cost of Beginning Work in Process	$             2,450	$            3,120	$          6,900	$          12,470
Cost of work on Beginning Work in Process	$                   -	$                979	$          2,531	$            3,510
Total Cost of Beginning WIP	$            2,450	$            4,099	$          9,431	$         15,980
Units started and completed	93100	93100	93100
Cost per equivalent unit	$            1.638	$            0.308	$          0.796
Cost of units started and completed	$        152,498	$          28,675	$        74,108	$       255,281
Cost of units transferred out	$        154,948	$          32,774	$        83,539	$       271,261
	Material	Labor	Overhead	Total
Ending work in Process Inventory
Equivalent units of Production	15540	5180	5180
Cost per equivalent unit	$            1.638	$            0.308	$          0.796
Cost of Ending work in Process Inventory	$          25,455	$            1,595	$          4,123	$         31,173
Total Costs accounted for				$       302,434
Reconciliation
Costs to be accounted for :
Cost of beginning work in process inventory	$          12,470
Costs added to the production during the year	$        290,000
Total Costs to be accounted for	$        302,470
Cost of Ending work in Process Inventory	$          31,173
Cost of units transferred out	$        271,261
Total Costs accounted for	$        302,434