Builder Products Ltd 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:

Materials are added at several stages during the cooking process, whereas labour and overhead costs are incurred uniformly. The company uses the weighted-average method.

Required
Prepare a production report for the Cooking Department for May. Use the following three steps in preparing your report:
1. Prepare a quantity schedule and a computation of equivalent units.
2. Compute the costs per equivalent unit for the month.
3. Using the data from requirement 1 and 2 above, prepare a cost reconciliation.

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Production data: Units in work progress inventory, 1 May; 100% complete as to materials and 80% complete as to labour and overhead Units started into production during May Units completed and transferred out Units in work progress inventory, 31 May; 60% complete as to materials and 20% complete as to labour and overhead Cost data: Work in progress inventory, 1 May: Materials cost Labour cost Overhead cost Cost added during May: Materials cost Labour cost Overhead cost 10,000 100,000 95,000 ? £1,500 1,800 5,400 154,500 22,700 68,100