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: Production data: Pounds in process, May 1; materials 100% complete; conversion 90% complete Pounds started into production during May Pounds completed and transferred out Pounds in process, May 31; materials 75% complete; conversion 25% complete Cost data: Work in process inventory, May 1: Materials cost Conversion cost Cost added during May: Materials cost Conversion cost 71,000 360,000 31,000 $ 90,100 $ 46,400 $ 468,590 $ 255,335 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 donnrtr

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Author:Libby
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Chapter1: Financial Statements And Business Decisions
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## Problem 4-16 (Algo) Comprehensive Problem-Weighted-Average Method [LO4-2, LO4-3, LO4-4, LO4-5]

### 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:

### Production Data:
- **Pounds in process, May 1:** 
  - Materials 100% complete; Conversion 90% complete: 71,000 pounds
- **Pounds started into production during May:** 360,000 pounds
- **Pounds completed and transferred out:**
- **Pounds in process, May 31:**
  - Materials 75% complete; Conversion 25% complete: 31,000 pounds

### Cost Data:
- **Work in process inventory, May 1:**
  - Materials cost: $90,100
  - Conversion cost: $46,400
- **Costs added during May:**
  - Materials cost: $468,590
  - Conversion cost: $255,335

### 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.

### Interactive Tabular Input:
The website interface provides interactive tabs for inputting answers to the required computations. The tab structure for inputs is as follows:

- **Required 1**
  - Compute the equivalent units of production for materials and conversion for May.
  - **Table:**
    | Equivalents Units | Materials | Conversion |
    |-------------------|-----------|------------|

- **Additional Required Steps (Tabs 2-5)**
  - The user will complete similar tables and input fields to compute costs per equivalent unit, costs of ending work in process inventory, costs of units transferred out, and prepare a cost reconciliation report for May.

---

This structure and breakdown should help in understanding and solving the assigned problem using the weighted-average method in process costing.
Transcribed Image Text:--- ## Problem 4-16 (Algo) Comprehensive Problem-Weighted-Average Method [LO4-2, LO4-3, LO4-4, LO4-5] ### 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: ### Production Data: - **Pounds in process, May 1:** - Materials 100% complete; Conversion 90% complete: 71,000 pounds - **Pounds started into production during May:** 360,000 pounds - **Pounds completed and transferred out:** - **Pounds in process, May 31:** - Materials 75% complete; Conversion 25% complete: 31,000 pounds ### Cost Data: - **Work in process inventory, May 1:** - Materials cost: $90,100 - Conversion cost: $46,400 - **Costs added during May:** - Materials cost: $468,590 - Conversion cost: $255,335 ### 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. ### Interactive Tabular Input: The website interface provides interactive tabs for inputting answers to the required computations. The tab structure for inputs is as follows: - **Required 1** - Compute the equivalent units of production for materials and conversion for May. - **Table:** | Equivalents Units | Materials | Conversion | |-------------------|-----------|------------| - **Additional Required Steps (Tabs 2-5)** - The user will complete similar tables and input fields to compute costs per equivalent unit, costs of ending work in process inventory, costs of units transferred out, and prepare a cost reconciliation report for May. --- This structure and breakdown should help in understanding and solving the assigned problem using the weighted-average method in process costing.
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