Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Builder Products, Incorporated, uses the weighted-average method of process costing. It manufactures a caulking compound that goes through three processing stages prior to completion. Information

Builder Products, Incorporated, uses the weighted-average method of process costing. 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 90% complete 61,000
Pounds started into production during May 260,000
Pounds completed and transferred out ?question mark
Pounds in process, May 31; materials 80% complete; conversion 20% complete 21,000
Cost data:
Work in process inventory, May 1:
Materials cost $ 58,800
Conversion cost $ 21,100
Cost added during May:
Materials cost $ 305,520
Conversion cost $ 115,790

Required:

For May:

  1. Compute the equivalent units of production for materials and conversion.
  2. Compute the cost per equivalent unit for materials and conversion.
  3. Compute the cost of ending work in process inventory for materials, conversion, and in total.
  4. Compute the cost of units transferred out to the next department for materials, conversion, and in total.
  5. Prepare a cost reconciliation report.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Management Accounting

Authors: Leslie G. Eldenburg, Albie Brooks, Judy Oliver, Gillian Vesty, Susan Wolcott

2nd Edition

1742166148, 978-1742166148

More Books

Students also viewed these Accounting questions

Question

2. What are the prospects for these occupations?

Answered: 1 week ago