Builder Products, Inc., uses the weighted-average method in its process costing system. It manufactures a caulking compound that

Question

1 month ago

5

Builder Products, Inc., uses the weighted-average method in its process costing system. It 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 74,000 Pounds started into production during May 390,000 Pounds completed and transferred out ? Pounds in process, May 31: materials 70% complete: conversion 30% complete 34,000 Cost data: Work in process inventory, May 1: Materials cost exist 98, 800 Conversion cost exist 44,000 Cost added during May: Materials cost exist513, 830 Conversion cost exist242, 130 Required: 1. Compute the equivalent units of production for materials and conversion for May 2. Compute the cost per equivalent unit for materials and conversion for May. 3. Compute the cost of ending work in process inventory for materials, conversion, and in total for May. 4. Compute the cost of units transferred out to the next department for materials, conversion, and in total for May. 5. Prepare a cost reconciliation report for May.

Business

1 answer:

marusya05 [3K] · Answer 1 · 2026-03-04T17:53:15+03:00

Answer:

Explanation:

Initial WIP inventory 74000

Add: Units initiated in May 390000

Subtract: Final inventory 34000

Completed and moved units 430000

1 Equivalent Units

Whole units Materials Conversion

Initial WIP inventory 74000 74000 74000

Units started and finished 356000 356000 356000

Final inventory 34000 23800 10200

Total units accounted for 464000 453800 440200

Materials Conversion

Production equivalent units 453800 440200

2

Cost Information: Total Material Conversion

Initial WIP inventory 142800 98800 44000

Costs incurred during May 755960 513830 242130

Total costs needing accounting 898760 612630 286130

Divided by Equivalent units 453800 440200

Cost per Equivalent unit 2.00 1.35 0.65

Materials Conversion

Cost per Equivalent unit 1.35 0.65

3

Cost Allocation:

Ending Work in process:

Material 32130

Conversion 6630

Total Ending Work in process 38760

4

Cost of completed and transferred units

Material 580500

Conversion 279500

Total costs 860000

5

Costs to be accounted for:

Initial WIP inventory 142800

Current expenses 755960

Overall costs to be accounted for 898760

Costs accounted for include:

Cost of completed and moved units 860000

Cost of ending work in process 38760

Overall accounted costs 898760