Question
Builder Products, Incorporated, uses the weighted-average method in its process costing system. It manufactures a caulking compound that goes through three processing stages prior to
Builder Products, Incorporated, 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:
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 | $ 154,500 |
Conversion cost | $ 90,800 |
Required:
3. Compute the cost of ending work in process inventory for materials, conversion, and in total for May.
PLEASE EXPLAIN HOW YOU GET THE 9000 and 3000. Thanks).
Materials Cost | Conversion Costs | ||
Pounds completed and transferred out | 95,000 | 95,000 | |
Add: Pounds in process, May 31 | 9,000 | 3,000 | |
( Pounds x % Completion ) | '=15,000*60% | '=15,000*20% | |
Equivalent Units Of Production | 104,000 | 98,000 |
Materials ( Equivalent Units x Unit Cost ) | $13,500 | '=9,000*1.5 | |
Add: Conversion ( Equivalent Units x Unit Cost ) | $3,000 | '=3,000*1 | |
Cost of ending work in process inventory | $16,500 |
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