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: 16,100 121,000 111,000 ? Production data: Units in process, May 1: 100% complete as to materials and 80% complete as to labour and overhead Units started into production during May Units completed and transferred out Units in process, May 31: 60% complete as to materials and 20% complete as to labour and overhead Cost data: Work-in-process inventory, May 1: Materials cost Labour cost Overhead cost Cost added during May: Materials cost Labour cost Overhead cost $ 2,550 3,280 7,100 182,000 32,800 83,200 Materials are added at several stages during the cooking process, whereas labour and overhead costs are incurred uniformly. The company uses the weighted average cost method. The company combines labour and overhead into a single cost category- conversion cost. Required: Prepare a production report for the cooking department for May. Use the following three steps in preparing your report: 1. Prepare a quantity schedule and a computation of equivalent units. Quantity Schedule Units to be accounted for: Work in process, May 1 Started into production Total units 16,100 121,000 137,100 Equivalent Units (EU) Materials Labour Overhead Units Units accounted for as follows: Transferred out Work in process, May 31 Total units and equivalent units of production 111,000 26,100 137,100 111,000 15,660 126,660 111,000 5,220 116,220 111,000 5,220 116,220 2. Compute the costs per equivalent unit for the month. (Round your answers to 3 decimal places.) Materials Labour Overhead $ 1.460 $ 0.310 $ 0.780 Costs per equivalent unit 3. Using the data from parts (1) and (2), prepare a cost reconciliation. (Round "Cost per equivalent unit" to 3 decimal places and the rest to the nearest dollar amount.) Note: There is difference of "$55" in both the values due to rounding and we feel a note which reads: "Due to rounding, your "Cost accounted for" may not be equal to "Cost to account for". Equivalent Units (EU) Total Cost Materials Labour Overhead Cost accounted for as follows: Transferred out Work in process, May 31: 0 Total work in process Total cost 0 4. Prepare a production report for the cooking department for May. Assuming the company uses the FIFO method. Follow parts (1) to (3). (Leave no cells blank, enter "O" wherever required. Round "Cost per equivalent unit" to 3 decimal places and the rest to the nearest dollar amount.) Quantity Schedule and Equivalent Units Quantity Schedule Units to be accounted for: Work in process, May 1 Started into production Total units 16,100 121,000 137,100 Equivalent Units (EU) Materials Labour Overhead Units 0 Units accounted for as follows: Work in process, May 1 Units brought into production and fully completed during the month Transferred out Total units and equivalent units of production 16,100 94,900 111,000 222,000 94,900 15,660 110,560 3,220 94,900 5,220 103,340 3,220 94,900 5,220 103,340 Cost per Equivalent Unit Overhead Materials $ 1.650 Labour $ 0.320 Costs per equivalent unit $ 0.810 Cost Reconciliation Note: There is difference of "$55" in both the values due to rounding and we feel a note which reads: "Due to rounding, your "Cost accounted for" may not be equal to "Cost to account for". Equivalent Units (EU) Materials Labour Overhead Total Cost $ 12,930 Cost accounted for as follows: Prior period cost in Work in Process, May 1 Cost incurred during May: To complete units in Work in Process, May 1 $ Total 0 To partially complete units in Work in Process, May 31 0 Total Total cost Cost transferred out, May 31 $ 12,930 $ 12,930
