Question

1) Helix Corporation uses the weighted-average method in its process costing system. It produces prefabricated flooring in a series of steps carried out in production departments. All of the material that is used in the first production department is added at the beginning of processing in that department. Data for May for the first production department follow:

		Percent Complete
	Units	Materials			Conversion
Work in process inventory, May 1	5,000	100	%		40	%
Work in process inventory, May 31	10,000	100	%		30	%
Materials cost in work in process inventory, May 1				$	1,500
Conversion cost in work in process inventory, May 1				$	4,000
Units started into production					180,000
Units transferred to the next production department					175,000
Materials cost added during May				$	54,000
Conversion cost added during May				$	352,000

Required:

1. Calculate the first production department's equivalent units of production for materials and conversion for May.

2. Compute the first production department's cost per equivalent unit for materials and conversion for May.

3. Compute the first production department's cost of ending work in process inventory for materials, conversion, and in total for May.

4. Compute the first production department's cost of the units transferred to the next production department for materials, conversion, and in total for May.

2)

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 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

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.

Answer 1

Helix Corporation Month Ended May 31 Equivalent Units Physical Direct Conversion UNITS Units Materials Costs Units to account for: Beginning work-in-process 5,000 Started in production 180,000 Total units to account for 185000 Units accounted for: Completed and transferred out Ending work-in-process Total units accounted for 175,000 10,000 185000 175000 10000 185000 175000 3000 178000 Direct Materials Conversion Costs Total Costs COSTS Costs to account for: Beginning work-in-process Costs added during May Total costs to account for Divided by: Total EUP Cost per equivalent unit Costs accounted for: Completed and transferred out Ending work-in-process Total costs accounted for $1,500 $54,000 $55,500 185000 $0.30 $4,000 $352,000 $356,000 178000 $2.00 $5,500 $406,000 $411,500 $52,500 $3,000 $55,500 $350,000 $6,000 $356,000 $402,500 $9,000 $411,500

1 The first production department's equivalent units of production for Materials = 185,000 units and for conversion for May = 178,000 units 2 The first production department's cost per equivalent unit for materials for May = $0.30 and The first production department's cost per equivalent unit for Conversion for May = $2.00 3 The first production department's cost of ending work in process inventory for materials = $3,000 The first production department's cost of ending work in process inventory for Conversion = $6,000 The first production department's cost of ending work in process inventory in total for May = $9,000 4 The first production department's cost of the units transferred to the next department for materials = $52,500 The first production department's cost of the units transferred to the next department for Conversion = $350,000 The first production department's cost of the units transferred to the next department in total for May = $402,500