Builder 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:

Materials are added at several stages during the cooking process, whereas labour and overhead costs are incurred uniformly. The company uses the weighted average cost method. The company combines labour and overhead into a single cost category?conversion cost.

Required:

Prepare a production report for the Cooking Department for May. Use the following steps in preparing your report:

1. Prepare a quantity schedule and a computation of equivalent units. You may wish to follow the format of Exhibit 4?9 for the quantity schedule.

2. Compute the costs per equivalent unit for the month.

3. Using the data from Requirements (1) and (2), prepare a cost reconciliation.

4. Repeat Requirements (1) to (3) using the FIFO method. Do not redo the quantity schedule if following the format of Exhibit 4?9.

Transcribed Image Text:

Production data: Units in process, May 1: 100% complete as to materials and 80% complete as to labour and overhead 15,000 Units started into production during May 110,000 Units completed and transferred out 100,000 Units in process, May 31: 60% complete as to materials and 20% complete as to ? labour and overhead Cost data: Work-in-process inventory, May 1: $ 2,000 Materials cost Labour cost 2,400 Overhead cost 6,000 Cost added during May: Materials cost 160,000 Labour cost 24,000 Overhead cost 70,000