Question

Exercise 4-8 Equivalent Units; Cost per Equivalent Unit; Assigning Costs to Units-Weighted-Average Method [LO4-2, L04-3, L04.4) 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 53,000 33,000 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% $ 46, 100 $ 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. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Calculate the first production department's equivalent units of production for materials and conversion for May. Materials 302.800 Equivalent units of production Conversion 276,400

Answer 1

Helix Corporation Requirement 1 Weighted Average Method: Materials Conversion Units transferred to the next production department 269800 269800 Equivalent units in ending work in process inventory: Materials: 33000 x 100% complete 33000 Conversion : 33000 x 20% complete 26400 Equivalent units of Production 302800 296200 Requirement 2 Cost of Beginning Work in process Cost added during the period Total Cost(a) Equivalent units of production Cost per equivalent unit Materials Conversion 46100 12400 59880 178316 105980 190716 302800 296200 0.35 0.64 Requirement 3 Materials Conversion Total Ending work in process inventory Equivalent units (see above) Cost per equivalent unit (see above) Cost of ending work in process inventory 33000 0.35 11550 26400 0.64 16998 28548 Requirement 4 Materials Conversion Total Units completed and transferred out: Units transferred to next department Cost per equivalent unit (see above) Cost of units completed and transferred out 269800 0.35 94430 269800 0.64 173718 268148