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
15,000
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"".
Solutions
Expert Solution
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"
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.
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.
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. 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. 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.
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.
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. 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.
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.
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:...