The PVC Company manufactures a high-quality plastic pipe thatgoes through three processing stges prior to completion.Information on work in the first department Cooking is givenbelow For May:Production Data:Pounds in process May 1:materials 100%complete: conversion 90% complete 70000Pounds started into production during May 350000Pounds completed and transferred to the next department ?Pounds in process May 31: materials 75% complete;conversion 25% complete 40000Cost Data:Work in process inventory May 1:Materials costs $86000Conversion Costs 36000Costs added during May:Materials Costs $447000Conversion costs 198000The company uses the weighted-average method.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 ofthe units transferred out to the next department.4. Prepare a cost reconciliation report for the month.
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