Response to the following problem:
The PVC Company manufactures a high-quality plastic pipe 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 to the next department ?
Pounds in process, May 31:
materials 75% complete; conversion 25% complete 40,000
Cost data:
Work in process inventory, May 1:
Materials cost $ 86,000
Conversion cost $ 36,000
Cost added during May:
Materials cost $ 447,000
Conversion cost $ 198,000
1. Determine the cost of ending work in process inventory and of the units transferred out to the next department.
2. Prepare a cost reconciliation report for the month?