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: Units in process, May 11 1001 complete as to materials and Bex complete as to labour and overhead 15,300 Units started into production during May 113,000 Units completed and transferred out 103,000 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 $ 2,150 Labour cost 2,640 Overhead cost 6,383 Cost added during May: Materials cost 165.ee Labour cost 26,00 Overhead cost | L30 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 15.300 113.000 128,300 Equivalent Units (EU) Materials Labour Overhead Units Units accounted for as follows: Transferred out 103,000 103,000 103,000 Work in process, May 31 Total units and equivalent units of production 25,300 128,300 15.180 118, 180 5.080 108,060 103.000 5,080 108,000 2. Compute the costs per equivalent unit for the month (Round your answers to 3 decimal places.) Materials Labour Overhead 0730 Cost per curven unit s 0:20 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 $4" 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 Cost accounted for as follows: Work in process, May 31: Materials Materials 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 unlt" to 3 decimal places and the rest to the nearest dollar amount.) Quantity Schedule and Equivalent Units Quantity Schedule Units to be accounted for: O Total units Equivalent tinits (EU) Materials Labour Dyerhead Units Units accounted for as follows: 0 0 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 "$4" 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 (EN Materials Labour Dverhead Total Cost $ 11,000 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 Materials Labour Overhead Total To bnng into production and fully complete To partially complete units in Work in Process, May 31 0 Total Total cost Cost transferred out, May 31 0 11000 11.000
