Question

Helox, Inc. manufactures a product that passes through two production processes. A quantity schedule for a recent month for the first process follows: Quantity Schedule Units to be accounted for: Work in process, April 1 (60% materials, 75% conversion cost added last month) 30,000 Started into production 210,000 Total units 240,000 Costs in the beginning work-in-process inventory of the first processing department were materials, $6,000 and conversion cost, $20,200. Costs added during the month were materials. $96,000, and conversion cost, $477,760. Required: 1. Assume that the company uses the weighted average cost method of accounting for units and costs. Determine the equivalent units for the month for the first process. Quantity Schedule Equivalent Units (EU) Materials Conversion Units accounted for as follows: Transferred to the next process Work in process, May 31 (all materials, 60% conversion cost added this month) Total units and equivalent units of production 228,000 12,000 240,000 2. Compute the costs per equivalent unit for the month for the first process. (Round your answers to 3 decimal places.)

Answer 1

1) Equivalent unit

		Equivalent unit
	Quantity Schedule	Direct material	Conversion
Units accounted for as follows
Transferred to next process	228000	228000	228000
Work in process,May 31	12000	12000	12000*60% = 7200
Total units and Equivalent unit of production	240000	240000	235200

2) Cost per equivalent unit

	Direct material	Conversion
Beginning WIP	6000	20200
Cost added	96000	477760
Total Cost	102000	497960
Equivalent unit	240000	235200
Cost per equivalent unit	0.425	2.117

Answer 2

whole unit