1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
andreev551 [17]
3 years ago
12

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 80% complete 10,000 Pounds started into production during May 100,000 Pounds completed and transferred out
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..... Please explain how to solve this?
Business
1 answer:
suter [353]3 years ago
6 0

Answer:

1.Total Equivalent Units   Materials   104,000 Conversion    98000

<u>2.</u> Cost per Equivalent Unit   Materials $ 1.5 Conversion $ 1

3. Materials Cost Ending Work in Process 13,500

4. Cost Of Units Transferred Out = $237,500

5. Both calculated and cost accounted are same. Mat. $ 156,000 Conversion $ 98000

Explanation:

The complete data is as follows:

Production data:

Pounds in process, May 1; materials 100% complete; conversion 80% complete 10,000

Pounds started into production during May 100,000

Pounds completed and transferred out ?

Pounds in Process 31 May : Materials 60 % , Conversion 20 % complete  15000

Cost Data

Work In Process May 1

Materials cost $ 1500

Conversion Cost $ 72 00

Cost Added During May

Materials cost $ 154,500

Conversion Cost $ 90,800

<u><em>Solution </em></u>

Builder Products, Inc.,

Weighted-Average Method

1. Equivalent Units

Particulars              Units       % of Completion       Equivalent Units

                                        Materials Conversion   Materials Conversion

Transferred Out    95000     100         100             95000      95000

<u>Ending WIP           15000        60          20                9000       3000   </u>

<u>Total Equivalent Units                                              104,000     98000</u>

<u />

Transferred Out units are calculated by adding Opening Inventory and production started and subtracting ending inventory units.

Transferred Out units = Opening Inventory+ production started -ending inventory units

Transferred Out units =10,000 + 100,00 - 15000= 95000 units.

2. Cost Per Equivalent Units

                                                       Materials         Conversion

Cost Of Opening Inventory         1500                  7200

<u>Cost Added                                  154500              90800</u>

<u>Total Costs                                   156000             98000</u>

Equivalent Units                          104000              98000

Cost per Equivalent Unit            156000/104000        98000/98000

                                                       $ 1.5                           $1.0

3. Cost of Ending Work In Process  $ 16500

Materials = 9000 * $ 1.5= $ 13500

Conversion = 3000 * $ 1.0=  $3000

We multiply the equivalenr number of units with the cost per unit to find the cost.

4. Cost Of Units Transferred Out = $237,500

Materials == 95 000 * $ 1.5= $ 142,500

Conversion = 95000 * $ 1.0=  $ 95000

5. A Cost Reconciliation Report

                                        Materials              Conversion

Ending WIP                       13500                   3000

<u>Transferred Out                 142500                95000</u>

<u>Total                                 156000                   98000</u>

These calculated costs reconcile with the costs given in the above data.

                                                      Materials         Conversion

Cost Of Opening Inventory         1500                  7200

<u>Cost Added                                  154500              90800</u>

<u>Total Costs                                   156000             98000</u>

You might be interested in
The power of a labor union weakens when the company introduces technologies that replace the need for the union's members. techn
icang [17]

Technology is a substitute for employees

6 0
2 years ago
In 2018, Bratten Fitness Company made the following cash purchases:
Nadusha1986 [10]

Answer:

Date           Particular                                         DR                          CR

a.               Patent                                               $214,500

                  Cash                                                                            214,500

          <em>Being total payment for the exclusive right </em>

<em>to produce X-core machine </em>

b.              Brand name                                        260,000

               Exercise Equipment                             403,000

                 cash                                                                       663,000

<em>Being the payment for the brand name of Silver Gym </em>

<em>and exercise equipment  </em>

<em>c.            </em>Copyright                                                  22,000

               Cash                                                                          22,000

<em>Being the payment for the exclusive right to sell Healthy book</em>

Explanation:

there is no journal enrty for the amount to be paid to Silver Gym on a monthly basis when the sales begin because the money has not been paid.

6 0
3 years ago
Amazon has decided to enter the college bookstore market. The goal of "Amazon Campus" is to offer co-branded university-specific
Leviafan [203]

Answer: product diversification

Explanation:

Product diversification is when the original market for a product is being expanded. Product diversification is used to boost a brand and also increase sales.

From the question, we are informed that Amazon has decided to enter the college bookstore market and that the goal of "Amazon Campus" is to offer co-branded university-specific web sites that offer textbooks and paraphernalia, such as logo sweaters and baseball hats. This development shows Amazon's relentless pursuit of product diversification.

7 0
3 years ago
Which of the following statements is true? Question 8 options: Always shake hands in an interview as it is the polite thing to d
SVETLANKA909090 [29]
I think the answer would be A. It definitely would not be B or C and D seems kind of rude so I think that A. would be the most courteous and kind. Hope this is helpful for you! :)
7 0
3 years ago
Read 2 more answers
In November 2016, General Motors produced a car that was delivered to a local dealership in December 2016. The auto was sold to
horsena [70]

Answer:

It will be counted as investment in 2016 and negative investment in 2017.

Explanation:

National income refers to the total value of a country's final output of all new goods and services produced in one year. There are various ways of measuring national income, e.g. GDP, GNP, etc

Therefore, following national income accounting practices, the car would be counted as part of the investments and GDP of 2016, and negative investment in 2017, because that was the year in which it was produced.

4 0
2 years ago
Other questions:
  • Which of the following accounts would be closed at the end of the year using the perpetual inventory​ system? A. Accounts Payabl
    7·1 answer
  • In its first year, Raydine Inc. reported sales revenue of $1,300,000, net income of $200,000, and paid dividends of $26,000 on c
    5·1 answer
  • Why is an organizational structure important?
    5·1 answer
  • What is brad's opportunity cost of producing one pound of beef?
    6·1 answer
  • When switching from a traditional costing system to an activity-based costing system that contains some batch-level costs: Multi
    5·1 answer
  • __________ are units within an organization that receive services from other units within the organization.a. Third-party distri
    6·1 answer
  • Reasons why South African post office taking private courier companies to court​
    14·1 answer
  • Using ________, measurements such as testing assumptions about the business, attributes the customers like, and retention rates
    5·1 answer
  • The u.s. bureau of labor statistics has a website that can be of great help when researching careers. it contains many types of
    6·2 answers
  • Which of the following is an Internet job search “don’t”?
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!