. Weighted Average Method

Buider Products Inc. manufactures a caulking compound that goes though 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 1 100% complete as to materials and 80% complete as to labor and overead 10,000

Units started into production during May 100,000

Units completed and trasferred out 95,000

Units in process, May 31: 60% complete as to materials and 20% complete as to labor and overhed ?

Cost data:

Work in process inventory May 1

Material cost 1,500

Labor cost 1,800

Overhead cost 5,400

Cost added during May

Material cost 154,500

Labor cost 22,700

Overhead cost 68,100

Material are added at several stages during the cooking process, whereas labor and overhead cost are incurred uniformly the company uses the weightedd average method.

Instrucciones:

Prepare a quantity schedule and a computation of equivalent units.

Compute the costs per equivalent unit for the month