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:

		Percent Complete
	Units	Materials			Conversion
Work in process inventory, May 1	66,000	100	%		50	%
Work in process inventory, May 31	46,000	100	%		30	%
Materials cost in work in process inventory, May 1				$	53,900
Conversion cost in work in process inventory, May 1				$	15,400
Units started into production					248,400
Units transferred to the next production department					268,400
Materials cost added during May				$	103,300
Conversion cost added during May				$	221,648

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

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Format is not available, can be slightly different: Note: Answers are highlighted in Yellow. Solution: Step 1 Explanation: Unit Reconciliation: Particulars Beginning WIP Started during the month Unit to be accounted for Completed and transferred out units Ending WIP Unit accounted for Units 66000 248400 314400 268400 46000 314400 Step 2 Equivalent units of production (EUP): Particulars Unit Completed Ending Balance Equivalent Units of production Trans.Units % Material 268400 100% 46000 100% 314400 EUP - DM % Conversion EUP - Conversion 268400 100% 268400 46000 30% 13800 314400 282200 Answer: 1) Step 3 Transfer in Direct Material Conversion Total Particulars Costs to be accounted for Beginning Cost Cost During the month Total Cost $ $ 53,900 103300 157200 15,400 221648 237048 69300 324948 394248 Equivalent Unit Production Cost per EUP 314400 0.50 $ $ 282200 0.84 $ Answer: b) 1.3400

Material Converstion 134200 225456 23000 11592 Total 359656 Answer:3) Total Costs transferred out Answer:4) Total cost of ending work in process Answer: 3) Transferred Out (Completed): (268400*1.34) 359656 Work in Progress, Ending: Material (46000*0.50) $ 23,000 Conversion (13800*0.84) $ 11,592 Answer: 4) Total cost of ending work in process for May $ 34,592