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
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 process, May 1; materials 100% complete; conversion 80% complete ............................................................10,000
Pounds started into production during May .........................................................................................................................100,000
Pounds completed and transferred out ..................................................................................................................................?
Pounds in process, May 31; materials 60% complete; conversion 20% complete .......................................................................15,000
Cost data:
Work in process inventory, May 1:...............................................................................................
Materials cost .................................................................................................................................. $1,500
Conversion cost................................................................................................................................. $7,200
Cost added during May: .
Materials cost................................................................................................................................. .$154,000
Conversion cost ............................................................................................................................. $90,800
The company uses the weighted-average method.
Required:
- Compute the equivalent units of production
- Compute the costs per equivalent unit for the month.
- Determine the cost of ending work in process inventory and of the units transferred out to the next department.
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