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. B. Compute the cost of ending work in process inventory for materials, conversion, and in total. . Compute the cost of units transferred out to the next department for materials, conversion, and in total. 5. Prepare a cost reconciliation report.
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. B. Compute the cost of ending work in process inventory for materials, conversion, and in total. . Compute the cost of units transferred out to the next department for materials, conversion, and in total. 5. Prepare a cost reconciliation report.
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter3: Process Cost Systems
Section: Chapter Questions
Problem 4CMA: A company is using process costing with the first-in, first-out (FIFO) method, and all costs are...
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Concept explainers
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.
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Redo please by fixing the mistake for the numbers specifically $498,800 18600 if I am not mistaken
![Problem 4-16 (Algo) Comprehensive Problem-Weighted-Average Method [LO4-2, LO4-3, LO4-4, LO4-5]
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
Required 1
60,000
250,000
Complete this question by entering your answers in the tabs below.
Required 2 Required 3 Required 4 Required 5
?
20,000
$ 59,000
$ 23,400
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.
$ 306,420
$ 128,580](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc9737efd-391f-457a-98f6-aa044a0527f1%2Fdccb8c16-1b63-40ca-afa5-852e5920ac42%2Finovaec_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Problem 4-16 (Algo) Comprehensive Problem-Weighted-Average Method [LO4-2, LO4-3, LO4-4, LO4-5]
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
Required 1
60,000
250,000
Complete this question by entering your answers in the tabs below.
Required 2 Required 3 Required 4 Required 5
?
20,000
$ 59,000
$ 23,400
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.
$ 306,420
$ 128,580
Transcribed Image Text:es
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.
Complete this question by entering your answers in the tabs below.
Required 1 Required 2
Required 3
Prepare a cost reconciliation report for May.
Note: Round your intermediate calculations to 2 decimal places.
Cost Reconciliation
Required 4 Required 5
Costs to be accounted for:
Cost of beginning work in process inventory
Costs added to production during the period
Total cost to be accounted for
Costs accounted for as follows:
Cost of ending work in process inventory
Cost of units completed and transferred out
Total cost accounted for
< Required 4
$
$
$
$
82,400
435,000
517,400
498,800
18,600
517,400
Required 5
>
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