1. Compute the equivalent units of production for materials and conversion for May. 2. Compute the…
The following solution is suggested to handle the subject “1. Compute the equivalent units of production for materials and conversion for May. 2. Compute the…“. Let’s keep an eye on the content below!
Question “1. Compute the equivalent units of production for materials and conversion for May. 2. Compute the…”
1. Compute the equivalent units of production for materials
and conversion for May.
and conversion for May.
2. Compute the cost per equivalent unit for materials and
conversion for May.
conversion for May.
3. Compute the cost of ending work in process inventory for
materials, conversion, and in total for May.
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.
department for materials, conversion, and in total for May.
5. Prepare a cost reconciliation report for May.
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: 64,000 290,000 24,000 Production data: Pounds in process, May 1: materials 1001 complete conversion 900 complete Pounds started into production during May Pounds completed and transferred out Pounds in process, May 31, materials 608 complete conversion 400 complete Cost data: Work in process inventory, May 1: Materials cost Conversion cost Cost added during May. Materiale cost Conversion cost $ 69,500 $ 23,500 $361,000 $129,320 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. Complete this question by entering your answers in the tabs below. Required 2 Required 1 Required 3 Required 5 Required 4 Compute the equivalent units of production for materials and conversion for May. Materials Conversion Equivalent units of production
Required 1 Required 2 Required 3 Required 4 Required 5 Compute the cost per equivalent unit for materials and conversion for May. (Round your answers to 2 decimal places.) Materials Conversion Cost per equivalent unit < Required 1 Required 3 >
Required 1 Required 2 Required 3 Required 4 Required 5 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.) Materials Conversion Total Cost of ending work in process inventory ( Required 2 Required 4 >
Required 1 Required 2 Required 3 Required 4 Required 5 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.) Materials Conversion Total Cost of units completed and transferred out < Required 3 Required 6 >
Required 1 Required 2 Required 3 Required 4 Required 5 Prepare a cost reconciliation report for May. (Round your intermediate calculations to 2 decimal places.) Cost Reconciliation Costs to be accounted for Total cost to be accounted for Costs accounted for as follows: Total cost accounted for < Required 4
Answer
1) Equivalent unit
Material | Conversion | |
Transferred unit out | 64000+290000-24000 = 330000 | 330000 |
Stop WIP | 24000*60% = 14400 | 9600 |
Total | 344400 | 339600 |
2) Cost per equivalent unit
Material | Conversion | |
Start WIP | 69500 | 23500 |
Additional cost | 361000 | 129320 |
Total Cost | 430500 | 152820 |
Equivalent unit | 344400 | 339600 |
Cost per equivalent unit | 1.25 | 0.45 |
3) The cost of terminating WIP
Material | Conversion | Total | |
Ending WIP costs | 14400*1.25 = 18000 | 9600*.45 = 4320 | 22320 |
4) Cost of Unit Transferred Out
Material | Conversion | Total | |
Transferred cost of unit | 330000*1.25 = 412500 | 330000*.45 = 148500 | 561000 |
5) Cost reconciliation
It is important to account for costs | |
Start WIP | 93000 |
Additional cost | 490320 |
To be accounted for the total cost | 583320 |
Assumed cost | |
Transferring the unit cost | 561000 |
Stop WIP | 22320 |
Total cost | 583320 |
Conclusion
Above is the solution for “1. Compute the equivalent units of production for materials and conversion for May. 2. Compute the…“. We hope that you find a good answer and gain the knowledge about this topic of business.