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: 84,000 Pounds started into production during May 490,000 Pounds completed and transferred out ? Pounds in process, May 31; materials 60% complete; conversion 40% complete 44,000 Cost data: Work in process inventory, May 1: Materials cost $ 130,200 Conversion cost $ 21,100 Cost added during May: Materials cost $ 676,580 Conversion cost $ 115,800 Required (see below for a few hints, if needed): 1. Compute the equivalent units of production for materials and conversion for May. 2. Compute the cost per equivalent unit for materials and conversion for May. 3. Compute the cost of ending work in process inventory for materials, conversion, and in total for May. 4. Compute the cost of units transferred out to the next department for materials, conversion, and in total for May. 5. Prepare a cost reconciliation report for May.

Hints:

This problem is very similar to Example 5-2 in the course packet. If you aren't sure how to get started, watch the solution video for that example problem.

Part 1: To answer this question, you need to first compute the number of units completed and transferred out using the formula on the bottom of p. 198 in your book.

Part 2: Remember that for each cost category, you need to include both the cost assigned to beginning work-in-process inventory and costs added during the period when computing the numerator for your calculation.

Part 5: See p. 203 in your book for an example of this type of report in the format it is asking for here.