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 Pounds started into production during May Pounds completed and transferred out Pounds in process, May 31; materials 60% complete; conversion 40% complete Cost data: Work in process inventory, May 1: Materials cost Conversion cost Cost added during May: Materials cost Conversion cost 60,000 250,000 ? 20,000 $ 59,000 $ 23,400 $ 306,420 $ 128,580 Required: For May: 1. Compute the equivalent units of production for materials and conversion. 2. Compute the cost per equivalent unit for materials and conversion. 3. Compute the cost of ending work in process inventory for materials, conversion, and in total. 4. Compute the cost of units transferred out to the next department for materials, conversion, and in total. 5. Prepare a cost reconciliation report.

Q: Explain the advantage of modified breakeven analysis over the basic breakeven formula.

A: A break-even analysis is a key calculation that compares the startup costs of a new firm, service,…

Q: Identify at least any four(4) advantages of IRR over DPBP

A: Internal rate of return (IRR): The Internal Rate of Return (IRR) is the minimum rate of return that…

Q: . The Kano model classifies needs into three categories. Which of the following is not acategory in…

A: Kano model is developed in 1984 by Noriaki Kano for: Categorizing and prioritizing customer needs…

Q: Explain whether the characteristics listed in Table 1 can be met simultaneously or else achieving by…

A:

Q: What makes indirect benefits so difficult to include in a BCA? What techniques might be used?

A: Indirect benefits are those benefits the return of which cannot be directly observed. Moreover, such…

Q: Explain whether the characteristics listed in Table 1 can be met simultaneously or else achieving by…

A:

Q: Why should the FIFO method be called a modified or department FIFO method?

A: First-in-First-Out (FIFO):In this method, items purchased initially are sold first. So, the value of…

Q: d. Write constraints modeling a situation where project 4 cannot be undertaken unlessprojects 1 and…

A: Following are the constraints modeling a situation where project 4 cannot be undertaken unless…

Process Costing

Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.  

Job Costing

Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.

ABC Costing

Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.