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		15,000
Units started into production during May		110,000
Units completed and transferred out		100,000
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	$	2,000
Labour cost		2,400
Overhead cost		6,000
Cost added during May:
Materials cost		160,000
Labour cost		24,000
Overhead cost		70,000

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 "$10" 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 "$10" 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"".

Answer 1

PART 1 Quantity Schedule & Calculation of Equivalent Units Quantities Physical Units % Completed EQ. Units Materials % Completed EQ. Units Conversion Costs Units to be Accounted For: Work-In-Process - July 1 15000 Started into Production 110000 Total Units to Account For 125000 Units Accounted For Completed & Transferred Out 100000 1.00 100000 1.00 100000 Work-In-Process - July 31 25000 0.60 15000 0.20 5000 Total Units 125000 115000 105000 PART 2 Computation Of Cost Per Equivalent Unit Materials Conversion Costs Total Costs Unit Costs Total Costs 162000 102400 264400 Equivalent Units 115000 105000 Cost per Equivalents Unit 1.409 0.975 2.384 Costs to be Accounted For Work-In-Process July 1 2000 8400 10400 Started into Production 160000 94000 254000 Total Costs to be Accounted For 162000 102400 264400 PART 3 Cost Reconciliation Schedule Costs Accounted For Transferred out Completed & Transferred Out 238400 238400 Work In Process Inventory March 31 Materials 21135 Conversion Costs 4875 26010 Total Cost Accounted For 264410 Note : Due to Rounding of there is a difference of $10 between "cost accounted for" & Cost To Account For"

PART 4 Calculation of Equivalent Units Quantities Physical Units % Completed EQ. Units Materials % Completed EQ. Units Conversion Costs Units to be Accounted For: Work-In-Process - July 1 15000 Started into Production 110000 Total Units to Account For 125000 Units Accounted For Beginning WIP Completed 15000 0.00 0 0.20 3000 Completed & Transferred Out 85000 1.00 85000 1.00 85000 Work-In-Process - July 31 25000 0.60 15000 0.20 5000 Total Units 125000 100000 93000 Computation Of Cost Per Equivalent Unit Materials Conversion Costs Total Costs Unit Costs Costs Added In May 160000 94000 254000 Equivalent Units 100000 93000 Cost per equivalents Unit 1.600 1.011 2.611 Costs to be Accounted For Work-In-Process July 1 2000 8400 10400 Started into Production 160000 94000 254000 Total Costs to Account For 162000 102400 264400 Cost Reconciliation Schedule Costs Accounted For Transferred out Work-In-Process March 1 10400 ekkarill92 Next > < Previous Related Solutions 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 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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