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Problem 4-16 (Algo) Comprehensive Problem-Weighted-Average Method [LO4-2, LO4-3, LO4-4, LO4-5] Builder Products, Incorporated, uses the weighted-average method of process costing. It manufactures a caulking compound
Problem 4-16 (Algo) Comprehensive Problem-Weighted-Average Method [LO4-2, LO4-3, LO4-4, LO4-5]
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 | 90,000 |
Pounds started into production during May | 550,000 |
Pounds completed and transferred out | ?question mark |
Pounds in process, May 31; materials 70% complete; conversion 30% complete | 50,000 |
Cost data: | |
Work in process inventory, May 1: | |
Materials cost | $ 152,300 |
Conversion cost | $ 63,300 |
Cost added during May: | |
Materials cost | $ 791,450 |
Conversion cost | $ 348,100 |
Required:
For May:
- Compute the equivalent units of production for materials and conversion.
- Compute the cost per equivalent unit for materials and conversion.
- Compute the cost of ending work in process inventory for materials, conversion, and in total.
- Compute the cost of units transferred out to the next department for materials, conversion, and in total.
- Prepare a cost reconciliation report.
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