Builder products, inc., uses the weighted-average method in its process costing system. it 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 87,000 pounds started into production during may 5200,000 pounds completed and transferred out ? pounds in process, may 31; materials 80% complete; conversion 20% complete 25,000 cost data: work in process inventory, may 1: materials cost $ 73,200 conversion cost $ 24,400 cost added during may: materials cost $ 380,400 conversion cost $ 134,300 required: 1. compute the equivalent units of production for materials and conversion for may. 2. compute the cost per equivalent unit for materials and conversion for may. 3. compute the cost of ending work in process inventory for materials, conversion, and in total for may. 4. compute the cost of units transferred out to the next department for materials, conversion, and in total for may. 5. prepare a cost reconciliation report for may.

Onsider the following subscription behavior information from genie, a web site that provides tools for constructing a family tree (ancestor search). subscriptions cost $9.99 per month, but you are charged for the entire year at the time of purchase. there is a one-year minimum term when you sign up for the service. once purchased, subscriptions are set to renew automatically unless the subscriber cancels them. when a membership renews, it renews for a one-year term and again you are charged for the entire year. there are no variable costs associated with providing this service to an individual customer, but genie does engage in customer relationship activities that they believe will increase customer retention. these customer relationship activities cost genie about $10 per year per customer. based on a sample of 1000 customers that joined genie five years ago, near the time when the company was founded, they were able to determine how many of those customers remained subscribers in the second year, third year etc. based on this information, genie calculated the average annual retention rate to be 20%. genie uses an annual discount rate of 8%. a. last year, genie spent $10,000 placing advertisements on google. genie management believes that these advertisements were responsible for about 300 new subscribers. would you recommend to genie management that they purchase more google ads? b. suppose a newly-introduced loyalty program increases the number of customers that remained to 30%. does this new data change your answer to 9.a? c. do you have any hesitations or concerns about making recommendations to management based on your above estimate of customer lifetime value?