Builder Products Inc uses the weightedaverage method in .pdf

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Builder Products uses a weighted-average process costing system to manufacture caulking compound through three stages. The document provides production and cost data for the first department, Cooking, in May, and asks to calculate equivalent units, cost per equivalent unit, ending work in process inventory costs, costs of units transferred out, and prepare a cost reconciliation report for May.

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Builder Products, Inc., 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:
Required:
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.
Production data:
Pounds in process, May 1;
materials 100% complete;
conversion 90% complete
77,000
Pounds started into production
during May
420,000
Pounds completed and
transferred out
?
Pounds in process, May 31;
materials 80% complete;
conversion 20% complete
37,000
Cost data:
Work in process inventory, May
1:
Materials cost $ 130,300
Conversion cost $ 61,100
Cost added during May:
Materials cost $ 677,540
Conversion cost $ 336,190

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1. Builder Products, Inc., 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: Required: 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. Production data: Pounds in process, May 1; materials 100% complete; conversion 90% complete 77,000 Pounds started into production during May 420,000 Pounds completed and transferred out ? Pounds in process, May 31; materials 80% complete; conversion 20% complete 37,000 Cost data: Work in process inventory, May 1: Materials cost $ 130,300 Conversion cost $ 61,100 Cost added during May: Materials cost $ 677,540 Conversion cost $ 336,190

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