Problem - Builders 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 80% complete                  10,000

Pounds started into production during May                                                                         100,000 

Pounds completed and transferred out                                                                               ?

Pounds in process, May 31; materials 60% complete;

Conversion 20% complete                                                                                                15,000 

Cost data:

Work in process inventory, May 1:

Materials cost                                                                                                                  $1,500 

Conversion cost                                                                                                               $7,200 

Cost added during May:

Materials cost                                                                                                                  $154,500 

Conversion cost                                                                                                              $90,800 

The company uses the weighted-average method.

Required -

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.

4. Prepare a cost reconciliation report for the month.