Builder Products, Inc., uses the weighted-average method in its process costing system. It manufactures a caulking…
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Question “Builder Products, Inc., uses the weighted-average method in its process costing system. It manufactures a caulking…”
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: 70,000 350,000 30,000 Production data: Pounds in process, May 1; materials 100% complete; conversion 90% complete Pounds started into production during May Pounds completed and transferred out Pounds in process, May 31; materials 70% complete; conversion 30% complete Cost data: dala: Work in process inventory, May 1: Materials cost Conversion cost Cost added during May: Materials cost Conversion cost $ 86,900 $ 39, 300 $451,510 $216,060 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 1 Required 2 Required 3 Required 4 Required 5 Compute the equivalent units of production for materials and conversion for May. Materials Conversion Equivalent units of production
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: 70,000 350,000 Pounds in Cost data: Work in Production data: Pounds in process, May 1; materials 100% complete; conversion 90% complete Pounds started into production during May Pounds completed and transferred out in process, May 31; materials 70% complete; conversion 30% complete in process inventory, May 1: Materials cost Conversion cost Cost added during May: Materials cost Conversion cost 30,000 $ 86,900 $ 39, 300 $451,510 $216,060 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 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
goes through three processing stages prior to completion. Information on work in the first department, Cooking, is given below for May: 70,000 350,000 ? Production data: Pounds in process, May 1; materials 100% complete; conversion 90% complete Pounds started into production during May Pounds completed and transferred out Pounds in process, May 31; materials 70% complete; conversion 30% complete Cost data: Work in process inventory, May 1: Materials cost Conversion cost Cost added during May: Materials cost Conversion cost 30,000 $ 86,900 $ 39, 300 $451,510 $216,060 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 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
goes through three processing stages prior to completion. Information on work in the first department, Cooking, is given below for May: 70,000 350,000 ? Pounds Production data: Pounds in process, May 1; materials 100% complete; conversion 90% complete Pounds started into production during May completed and transferred out unde Pounds in process, May 31; materials 70% complete; conversion 30% complete Cost data: Work in process inventory, May 1: Materials cost Conversion cost Cost added during May: Materials cost Conversion cost 30,000 $ 86,900 $ 39, 300 $451,510 $216,060 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 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
$ 39, 300 Conversion cost Cost added during May: Materials cost Conversion cost $451,510 $216,060 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 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 Required 5
Answer
Solution 1
Builder Products Inc. | |||
Production Cost Report – First Department | |||
Calculation of an Equivalent Unit of Production | |||
Particulars | Physical Units | Material | Conversion |
Units to be accounted for: | |||
Start WIP | 70000 | ||
In production | 350000 | ||
To account for the total units | 420000 | ||
Units are accounted for: | |||
Completed unit & Moved out | 390000 | 390000 | 390000 |
Ending inventory units: | 30000 | ||
Material (70%) | 21000 | ||
Conversion (30%) | 9000 | ||
Production units equivalent to echivalent units | 420000 | 411000 | 399000 |
Solution 2
Builder Product Inc. Calculation of the cost per unit equivalent – First department | |||
Particulars | Material | Conversion | Total |
Opening WIP | $86,900 | $39,300 | $126,200 |
Additional Costs during the Period | $451,510 | $216,060 | $667,570 |
To be accounted for the total cost | $538,410 | $255,360 | $793,770 |
Production units equivalent to echivalent units | 411000 | 399000 | |
Cost per Equivalent unit | $1.31 | $0.64 |
Solution 3 and 4:
Builder Product Inc. Cost of end WIP and units completed and transferred out – First Department | |||
Particulars | Material | Conversion | Total |
Equivalent unit for Ending WIP | 21000 | 9000 | |
Cost per equivalent unit | $1.31 | $0.64 | |
Cost of ending WIP (Equivalent Unit * Cost per equivalent Unit) | $27,510 | $5,760 | $33,270 |
Completed units and transferred | 390000 | 390000 | |
Cost of completed units & transferred (Unit completed * cost for each equivalent unit) | $510,900 | $249,600 | $760,500 |
Solution 5
Cost reconciliation – First Department | |
Particulars | |
To be accounted: | |
Start WIP inventory | $126,200.00 |
Additional cost for production | $667,570.00 |
Total costs to be accounted | $793,770.00 |
Prices accounted for as: | |
Unit cost | $760,500 |
Ending WIP: | |
Material | $27,510 |
Converison | $5,760 |
Total Ending WIP | $33,270 |
Total costs accounted for | $793,770 |
Conclusion
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