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 90% complete 67,000 Pounds started into production during May 320,000 Pounds completed and transferred out ?Pounds in process, May 31: materials 70% complete: conversion 30% complete 34,000 Cost data: Work in process inventory, May 1: Materials cost exist 98, 800 Conversion cost exist 44,000 Cost added during May: Materials cost exist513, 830 Conversion cost exist242, 130 Compute the equivalent units of production for materials and conversion for May 2.

*Units transferred to the next department = Units in beginning work in process + Units started into production - Units in ending work in process = 67,000 + 320,000 - 34,000 = 353,000

2. Cost per equivalent unit

Materials Conversion

Cost of beginning work in process $ 98, 800 $ 44,000

Cost added during the period 513, 830 242, 130

Total cost (a) $612,630 $ 286,130

Equivalent units of production (b) 380,000 357,300

Cost per equivalent unit (a) ÷ (b) $1.61 $ 0.80

3. and 4.

Cost of ending work in process inventory and units transferred out

Materials Conversion Total

Ending work in process inventory:

Equivalent units 27,000 4,300

Cost per equivalent unit $ 1.61 $ 0.80

Cost of ending

work in process inventory $ 43,470 $ 3,440 $ 45,910

Units completed and transferred out:

Units transferred to the 353,000 353,000

next department

Cost per equivalent unit $ 1.61 $ 0.80

Cost of units completed and

transferred out $ 568,330 $ 282,400 $850,730

5. Cost Reconciliation:

Cost of beginning work in process inventory ($ 98, 800+ $44,000 ) = $142,800

Costs added to production during the period ($ 513, 830+ $242, 130 ) = $755,960