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1. The computation of the equivalent units of production for materials and conversion for May (Builder Products, Inc.) is as follows:
Materials Conversion
Total equivalent units 453,800 440,200
2. The computation of the cost per equivalent unit for materials and conversion for May (Builder Products, Inc.) is as follows:
Materials Cost Conversion Cost
Cost per equivalent unit $1.35 $0.65
3. The computation of the cost of ending work in process inventory for materials, conversion, and in total for May (Builder Products, Inc.) is as follows:
Materials Cost Conversion Cost Total Cost
Ending work in process $32,130 $6,630 $38,760
4. The computation of the cost of units transferred out to the next department for materials, conversion, and in total for May (Builder Products, Inc.) is as follows:
Materials Cost Conversion Cost Total Cost
Units transferred out $580,500 $279,500 $860,000
5. The preparation of a cost reconciliation report for May (Builder Products, Inc.) is as follows:
Materials Cost Conversion Cost Total Cost
Cost to be accounted for:
Work in process, May 1: $98,800 $44,000 $142,800
Cost added during May: 513,830 242,130 755,960
Total costs to be accounted $612,630 $286,130 $899,760
Cost accounted for:
Ending work in process $32,130 $6,630 $38,760
Units transferred out $580,500 $279,500 $860,000
Total costs accounted for $612,630 $286,130 $899,760
What is the weighted-average method?
The weighted-average method of accounting for inventory considers the weight (units) of each cost so that their relative importance or weights are factored into the computations.
Question Completion with Data and Calculations:
Production data:
Pounds in process May 1: materials 100% complete: conversion 90% complete = 74,000
Pounds started into production during May = 390,000
Pounds completed and transferred out = 430,000
Pounds in process, May 31: materials 70% complete: conversion 30% complete = 34,000
Total costs of production:
Cost data: Materials Conversion Total Cost
Work in process inventory, May 1: $98,800 $44,000 $142,800
Cost added during May: $513,830 $242,130 755,960
Total costs $612,630 $286,130 $899,760
1. Equivalent units of production for materials and conversion for May (Builder Products, Inc.) is as follows:
Units Materials Conversion
Started into production 390,000 430,000 430,000
Ending units 34,000 23,800 (70%) 10,200 (30%)
Total equivalent units 453,800 440,200
2. Cost per equivalent unit for materials and conversion for May (Builder Products, Inc.) is as follows:
Materials Cost Conversion Cost
Total costs $612,630 $286,130
Total equivalent units 453,800 440,200
Cost per equivalent unit $1.35 $0.65
3. Cost of ending work in process inventory for materials, conversion, and in total for May (Builder Products, Inc.) is as follows:
Materials Cost Conversion Cost Total Cost
Ending work in process $32,130 $6,630 $38,760
(23,800 x $1.35) (10,200 x $0.65)
4. Cost of units transferred out to the next department for materials, conversion, and in total for May (Builder Products, Inc.) is as follows:
Materials Cost Conversion Cost Total Cost
Units transferred out $580,500 $279,500 $860,000
(430,000 x $1.35) (430,000 x $0.65)
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.
Learn more about the weighted-average method at https://brainly.com/question/4576268
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