Question

Helix Corporation 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	54,000	85	%		50	%
Work in process inventory, May 31	34,000	60	%		30	%
Materials cost in work in process inventory, May 1				$	46,600
Conversion cost in work in process inventory, May 1				$	12,600
Units started into production					243,600
Units transferred to the next production department					263,600
Materials cost added during May				$	316,920
Conversion cost added during May				$	181,798

3. Determine the total cost of ending work in process inventory and the total cost of units transferred to the next process in May. (Round your intermediate calculations to 2 decimal places.) Total Cost of ending work in process inventory Cost of units completed and transferred out

Answer 1

Solution

			Total
Ending Inventory			$ 33,354
Units Completed and transferred			$ 524,564

Working

Reconciliation of Units
A	Opening WIP	54,000
B	Introduced	2,43,600
C=A+B	TOTAL	2,97,600
D	Transferred	2,63,600
E=C-D	Closing WIP	34,000

.

Statement of Equivalent Units(Weighted average)
				Material		Conversion cost
	Units			Complete %	Equivalent units	Complete %	Equivalent units
Transferred	2,63,600			100%	2,63,600	100%	2,63,600
Closing WIP	34,000			60%	20,400	30%	10,200
Total	2,97,600			Total	2,84,000	Total	2,73,800

.

Cost per Equivalent Units (Weighted average)
COST		Material	Conversion cost	TOTAL
Beginning WIP Inventory Cost		$ 46,600	$ 12,600	$ 59,200
Cost incurred during period		$ 316,920	$ 181,798	$ 498,718
Total Cost to be accounted for		$ 363,520	$ 194,398	$ 557,918
Total Equivalent Units		2,84,000	2,73,800
Cost per Equivalent Units		$                   1.28	$                     0.71	$                1.99