Chapter 4, Problem 16P

PROBLEM 4-16 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:

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 nest department for materials, conversion, and in total for May.
5. Prepare a cost reconciliation report for May