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		15,800
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 overhead		?
Cost data:
Work-in-process inventory, May 1:
Materials cost	$	2,400
Labour cost		3,040
Overhead cost		6,800
Cost added during May:
Materials cost		176,000
Labour cost		30,400
Overhead cost		79,600

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 "$139" 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.)
a) Quantity Schedule and Equivalent Units

b) Cost per Equivalent Unit

c) Cost Reconciliation

Note: There is difference of "$139" 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

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Builder
Weighted Average
Unit reconciliation	Whole Units
Beginning work in process inventory	15,800.00
Add: Units started in the month	118,000.00
Less: Ending work in process inventory	25,800.00
Units completed in the month	108,000.00

Answer 1	Whole Units	% Materials	EUP- Materials	% Conversion	EUP- Conversion
Units completed in the month	108,000.00	100%	108,000.00	100%	108,000.00
Units ending in WIP Inventory	25,800.00	60%	15,480.00	20%	5,160.00
Equivalent Units of production	133,800.00		123,480.00		113,160.00

Answer 2	EUP- Materials	EUP- Conversion	Total Cost
Cost of beginning work in process	2,400.00	9,840.00	12,240.00
Costs added during the period	176,000.00	110,000.00	286,000.00
Costs to account for	178,400.00	119,840.00	298,240.00
Equivalent Units of production	123,480.00	113,160.00
Cost per Equivalent Unit of production	1.445	1.059	2.504
Answer 3	EUP	Cost per EUP	Total Cost
Direct Materials	108,000.00	1.445	156,060.00
Conversion	108,000.00	1.059	114,372.00
Total costs transferred out			270,432.00
Direct Materials	15,480.00	1.445	22,369.00
Conversion	5,160.00	1.059	5,465.00
Total costs of ending work in process			27,834.00
Costs accounted for			298,266.00

FIFO
Answer 4 a	Whole Units	% Materials	EUP- Materials	% Conversion	EUP- Conversion
Beginning work in process inventory	15,800.00	0%	-	20%	3,160.00
Started and completed in same month	92,200.00	100%	92,200.00	100%	92,200.00
Units ending in WIP Inventory	25,800.00	60%	15,480.00	20%	5,160.00
Equivalent Units of production	133,800.00		107,680.00		100,520.00

Answer 4 b	EUP- Materials	EUP- Conversion	Total Cost
Costs added during the period	176,000.00	110,000.00	286,000.00
Equivalent Units of production	107,680.00	100,520.00
Cost per Equivalent Unit of production	1.634	1.094	2.728
Answer 4 c
Costs of units transferred out	EUP	Cost per EUP	Total Cost
Beginning work in process inventory			12,240.00
Costs to complete beginning work in process inventory
Direct Materials	-	1.634	-
Conversion	3,160.00	1.094	3,458.00
Cost of units started and completed in same month
Direct Materials	92,200.00	1.634	150,655.00
Conversion	92,200.00	1.094	100,867.00
Total transferred out			267,220.00
Costs of ending work in process	EUP	Cost per EUP	Total Cost
Direct Materials	15,480.00	1.634	25,295.00
Conversion	5,160.00	1.094	5,646.00
Total costs of ending work in process			30,941.00
Total costs accounted for			298,161.00