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: Production data: Pounds in process, May 1; materials 100% complete; conversion 90% complete 80,000 Pounds started into production during May 450,000 Pounds completed and transferred out ? Pounds in process, May 31: materials 60% complete; conversion 40% complete 40,000 Cost data: Work in process inventory, May 1: Materials cost $ 116,900 Conversion cost $ 35,800 Cost added during May: Materials cost $ 607,840 Conversion cost $ 196,960
For Materials and Conversion
1. Compute the equivalent units of production.
2. Compute the costs per equivalent unit for the month.
3. Determine the cost of ending work in process inventory and of the units transferred out to the next department.