Question

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: Units 67,000 47,000 Work in process inventory, May 1 Work in process inventory, May 31 Materials cost in work in process inventory, May 1 Conversion cost in work in process inventory, May 1 Units started into production Units transferred to the next production department Materials cost added during May Conversion cost added during May Percent Complete Materials Conversion 100 % 30 % 100 % 20 % $ 54,400 $ 15,900 258, 200 278, 200 $ 108,209 $ 228,560 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. Complete this question by entering your answers in the tabs below.

Answer 1

Solution

	Material	Conversion
Equivalent Units of Production	3,25,200	2,87,600

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	Material	Conversion
Cost per equivalent Unit	$                    0.50	$                   0.85

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	Material	Conversion	Total
Ending Inventory	$ 23,500	$ 7,990	$ 31,490

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	Material	Conversion	Total
Units Completed and transferred	$ 139,100	$ 236,470	$ 375,570

Working

Statement of Equivalent Units(Weighted average)
				Material		Conversion cost
	Units			Complete %	Equivalent units	Complete %	Equivalent units
Transferred out	2,78,200			100%	2,78,200	100%	2,78,200
Ending WIP	47,000			100%	47,000	20%	9,400
Total	3,25,200			Total	3,25,200	Total	2,87,600

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Cost per Equivalent Units (Weighted average)
COST		Material	Conversion cost	TOTAL
Beginning WIP Inventory Cost		$ 54,400	$ 15,900	$ 70,300
Cost incurred during period		$ 108,200	$ 228,560	$ 336,760
Total Cost to be accounted for		$ 162,600	$ 244,460	$ 407,060
Total Equivalent Units		3,25,200	2,87,600
Cost per Equivalent Units		$                   0.50	$                     0.85	$                1.35

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Statement of cost (Weighted average)
Cost	Equivalent Cost/unit	Ending WIP		Transferred
		Units	Cost Allocated	Units	Cost Allocated
Material	$ 0.50	47,000	$          23,500.00	2,78,200	$ 139,100
Conversion cost	$ 0.85	9,400	$             7,990.00	2,78,200	$      2,36,470.00
TOTAL	$ 407,060	TOTAL	$ 31,490	TOTAL	$ 375,570