Builder Products, Inc., manufactures a caulking compound that goes through three processing...
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: | |
| Pounds in the process, May 1; materials | |
| 100% complete, conversion 90% complete | 62,000 |
| Pounds started into production during May | 270,000 |
| Pounds completed and transferred out | ? |
| Pounds in the process, May 31 | |
| Materials 70% complete: conversion 30% complete | 22,000 |
| Cost data: | |
| Work in process inventory, May 1: | |
| Materials cost | $55,100 |
| Conversion cost | $ 26,800 |
| Cost added during May: | |
| Materials cost | $286,570 |
| Conversion cost | $147,330 |
The company uses the weighted-average method
Required:
1. Compute the equivalent units of production.
| Materials | Conversion | |
|---|---|---|
| Equivalent units of production |
2. Compute the costs per equivalent unit for the month. (Round your answers to 2 decimal places.)
3. Determine the cost of ending work in process inventory and of the units transferred out to the next department. (Round your intermediate calculation to 2 decimal places.)
| Total | |
|---|---|
| Cost of ending work in process inventory | |
| Cost of units completed and transferred out |
4. Prepare a cost reconciliation report for the month. (Round your intermediate calculations to 2 decimal places)
| Cost Reconciliation | |
|---|---|
| Costs to be accounted for: | |
| Cost of beginning work in process inventory | |
| Costs added to production during the period | |
| Total cost to be accounted for | $0 |
| Costs accounted for as follows: | |
| Cost of ending work in process inventory | |
| Cost of units completed and transferred out | |
| Total cost accounted for | $0 |
Process costing:
The costing technique which uses equivalent units in production and cost per equivalent unit as the basis to transfer production costs to the processes is called the process costing system.
This is system is generally used by industries manufacturing large quantities of similar products.
Answer and Explanation: 1
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Calculate the given requirement as under:
| Calculation of units completed and transferred | |
|---|---|
| &nbs... |
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