uilder Products, Inc., manufactures a caulking compound that goes through three
ID: 2415993 • Letter: U
Question
uilder Products, Inc., 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 70,000
Pounds started into production during May 350,000
Pounds completed and transferred out ?
Pounds in process, May 31:
materials 70% complete; conversion 30% complete 30,000
Cost data:
Work in process inventory, May 1:
Materials cost $ 86,900
Conversion cost $ 39,300
Cost added during May:
Materials cost $ 451,510
Conversion cost $ 216,060
The company uses the weighted-average method.
Required:
1. Compute the equivalent units of production.
2.
Compute the costs per equivalent unit for the month. (Round your answers to 2 decimal places.)
3.
Determine the cost of ending work in process inventory and of the units transferred out to the next department. (Round your intermediate calculation to 2 decimal places.)
4.
Prepare a cost reconciliation report for the month.
How do i solve this using the fifo method?
Explanation / Answer
As per your requirement Under FIFO Method
Units Completed and transferred out = unit in opening + Started in Producton - Closing
= 70,000 + 350,000 - 30,000
= 390,000
1) Statement for equivalent units
2) Statement of Cost per Equivalent unit
3) Cost of ending Work in process
Cost Reconcilition report report
Particulars Units %age completed during year Mateial %age completed during year Conversion Cost Opening 70,000 0% ( 100% - 100%) 0 10% ( 100%- 90%) 7,000 Started & Completed (390,000- 70,000) 320,000 100% 320,000 100% 320,000 Started But now in Closing ( 350,000 - 320,000) 30,000 70% 21,000 30% 9,000 Total 420,000 341,000 336,000Related Questions
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