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: 15,400 114,000 104,000 2 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 $ 2,200 2,720 6,400 168,000 27,200 74,800 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 15,400 Units to be accounted for. Work in process, May 1 Transferred out Total units 114,000 129,400 Equivalent Units (EU) Materials Labour Overhead Units 88,600 88,600 Units accounted for as follows: Units brought into production and fully completed during the month Work in process, May 31 Total units and equivalent units of production 88,600 25,400 114,000 15,240 88,600 5.080 93,680 5,080 93,680 103,840 2. Compute the costs per equivalent unit for the month. (Round your answers to 3 decimal places.) Materials $ 1.618 Labour Overhead $ 0.281 $ 0.773 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 which reads: "Due to rounding, your "Cost Note: There is difference of $122" in both the values due to rounding and we feel accounted for" may not be equal to "Cost to account for". Equivalent Units (EU) Materials Labour Overhead Total Cost Cost accounted for as follows: Work in process, May 31: Total work in process Total cost 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 "0" 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: Total units Equivalent Units (EU) Materials Labour Overhead Units Units accounted for as follows: Total units and equivalent units of production 0 0 0 Equivalent Units (EU) Materials Labour Overhead Units Units accounted for as follows: Total units and equivalent units of production Cost per Equivalent Unit Materials Labour Overhead Costs per equivalent unit Cost Reconciliation Note: There is difference of $122" 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 $ 11,320 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 To partially complete units Work in Process, May 31 Total Total cost Cost transferred out, May 31 $ $ 01 11,320 11,320
