Question

Reyn w of costs through the two processing departments during April. Units: Cost per Equivalent Unit: Assigning Costs to Units-Weighted Averas Prepare journal entries sho EXERCISE 5-8 Equivalent Units: C Method L05-2, L05-3, LO5-4 Helix Corporation uses the weigh cated flooring in a series of steps carr ted-average method in its process costing system. It produces prefabri- as of steps carried out in production departments. All of the material that is used in is added at the beginning of processing in that department. Data for May the first production department is added at the beginn for the first production department follow: Units Percent Complete Materials Conversion Work in process inventory, May 1 ...... 5,000 Work in process inventory, May 31. ... 100% 40% 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 MOV $54,000 Conversion cost added during me ......... $352,000 Required: 1. Calculate the first production department's equivalent units of production for materials and conversion for May 4. 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. Compute the first production department's cost of the units transferred to the next production department for materials, conversion, and in total for May. XERCISE 5-9 Fruivalent Units and Cost per Equivalent Unit-Weighted Average Method L05-2

Answer 1

Production report using weight Average Method Physical units Units to be accounted for :- Beginning work in process Started into Production Total Units Accounted for 5000 180000 185000 1. Equivalent units for Material and Conversion cost Equivalent Unit Conversion Physical units Material Units to be accounted for:- Units Completed & transferred out Ending work in Process Total Units 175000 10000 185000 175000 10000 185000 175000 3000 178000 Ending WIP = Units in ending WIP X Percentage complete 10000 x 100% 10000 x 30% 2. Cost Per Equivalent Unit Material Conversion Total cost Cost To be accounted For:- Beginning work in process Cost added during month Total Cost 1,500 $ 54,000 $ 55,500 $ 4,000 $ 352,000 $ 356,000 $ 5,500 406,000 411,500 (A) Equivalent Units Cost per unit (B) (A)/(B) 185000 0.30 178000 2.00 $ $ 2.30 3. cost of Ending work in Process 3,000 Ending work in process: Material Conversion Total Cost of Ending Work in Process (10000 units x $0.30) (3000 units x $ 2.00) 6,000 9,000 4.Cost of goods Transferred out Units Completed & Transferred out:- Material Conversion Total Cost of units completed & Transferred out 52,500 350,000 (175000 units x $0.30) (175000 units x $ 2.00) $ 402,500