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 60,000 40,000 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 % 50 % 100 % 30 % $ 50,200 $ 13,900 246,000 266,000 $ 78,320 $ 200,160 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.

Answer 1

Requirement 1

	Material	Conversion
Equivalent Units of Production	306,000	278,000

Requirement 2

	Material	Conversion
Cost per equivalent Unit	$                    0.42	$                   0.77

Requirement 3 and 4

	Material	Conversion	Total
Ending Inventory	$ 16,800	$ 9,240	$ 26,040
Units Completed and transferred	$ 111,720	$ 204,820	$ 316,540

Working

Statement of Equivalent Units(Weighted average)
				Material		Conversion cost
	Units			Complete %	Equivalent units	Complete %	Equivalent units
Transferred	266,000			100%	266,000	100%	266,000
Closing WIP	40,000			100%	40,000	30%	12,000
Total	306,000			Total	306,000	Total	278,000

.

Cost per Equivalent Units (Weighted average)
COST		Material	Conversion cost	TOTAL
Beginning WIP Inventory Cost		$ 50,200	$ 13,900	$ 64,100
Cost incurred during period		$ 78,320	$ 200,160	$ 278,480
Total Cost to be accounted for		$ 128,520	$ 214,060	$ 342,580
Total Equivalent Units		306,000	278,000
Cost per Equivalent Units		$                   0.42	$                     0.77

.

Statement of cost (Weighted average)
Cost	Equivalent Cost/unit	Ending WIP		Transferred
		Units	Cost Allocated	Units	Cost Allocated
Material	$ 0.42	40,000	$          16,800.00	266,000	$ 111,720
Conversion cost	$ 0.77	12,000	$             9,240.00	266,000	$        204,820.00
TOTAL	$ 342,580	TOTAL	$ 26,040	TOTAL	$ 316,540