Question

Hellx 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: Work in process inventory, May 1 Work in process inventory, May 31 Materials cost in work in process inventory, May Percent Complete Units Materials Conversion 53,000 100 % 30 % 33,000 100 % 20 % $ 46,100 Conversion cost in work in process inventory, May Units started into production Units transferred to the next production department Materials cost added during May Conversion cost added during May $ 12,400 249,800 269,800 $ 59,880 $178, 316 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

Answer 1

1
	Materials	Conversion
Units completed and transferred out	269800	269800
Work in process, ending:
33000 X 100%	33000
33000 X 20%		6600
Equivalent units of production	302800	276400
2
	Materials	Conversion
Work in process, May 1	46100	12400
Cost added during May	59880	178316
Total costs	105980	190716
Divide by Equivalent units of production	302800	276400
Cost per Equivalent unit	0.35	0.69
3
	Materials	Conversion	Total
Work in process, ending units	33000	6600
X Cost per Equivalent unit	0.35	0.69
Cost of ending work in process inventory	11550	4554	16104
4
	Materials	Conversion	Total
Units completed and transferred out	269800	269800
X Cost per Equivalent unit	0.35	0.69
Cost of Units completed and transferred out	94430	186162	280592