Homework SourseBuilder Products Inc uses the weightedaverage method in its
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:
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..... Please explain how to solve this? Thank you!
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. (Round your answers to 2 decimal places.)
3. Compute the cost of ending work in process inventory for materials, conversion, and in total for May. (Round your intermediate calculations to 2 decimal places.)
4. Compute the cost of units transferred out to the next department for materials, conversion, and in total for May. (Round your intermediate calculations to 2 decimal places.)
5. Prepare a cost reconciliation report for May. (Round your intermediate calculations to 2 decimal places.)
| Production data: | ||
| Pounds in process, May 1; materials 100% complete; conversion 90% complete | 81,000 | |
| Pounds started into production during May | 460,000 | |
| Pounds completed and transferred out | ? | |
| Pounds in process, May 31; materials 80% complete; conversion 20% complete | 55,000 | |
| Cost data: | ||
| Work in process inventory, May 1: | ||
| Materials cost | $ | 158,200 |
| Conversion cost | $ | 50,500 |
| Cost added during May: | ||
| Materials cost | $ | 822,300 |
| Conversion cost | $ | 277,520 |
Solution
1) Equivalent unit :
2) Calculate cost per equivalent unit:
Cost per equivalent unit
3) Calculate cost of ending work in process
4_) Calculate cost of units transferred out
5) Cost reconciliation :
| Whole unit | % | EUP-material | % | EUP-conversion | |
| Units transferred out | 486000 | 100% | 486000 | 100% | 486000 |
| Ending work in process | 55000 | 80% | 44000 | 20% | 11000 |
| Total | 541000 | 530000 | 497000 | ||
