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: 20 points Skipped Percent Complete Units Materials Conversion 5,000 100 % 40 % 10,000 100% 30 % $ 1,500 eBook 00 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 Hint $ 4,000 180,000 175,000 $ 54,000 $352,000 Print References 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. 2 Required Required Required Required 1 Calculate the first production department's equivalent units of production for materials and conversion for May. Materials Conversic Equivalent units of production Required 1 Required 2 >

Answer 1

1.

	Materials	Conversion
Equivalent units of production	185000	178000

2.

	Materials	Conversion
Cost per equivalent unit	0.3	2

3.

	Materials	Conversion	Total
Cost of ending work in process inventory	52500	350000	402500
	[175000*0.3]	[175000*2]

4.

	Materials	Conversion
Cost of units completed and transferred out	3000	6000	9000
	[10000*0.3]	[3000*2]

Workings:

Units to account for		Materials		Conversion
		%	Units	%	Units
Beginning WIP	5,000
Started in process	180,000
Total units to account for	185,000
Units accounted for:
Started and completed	175,000	100%	175000	100%	175000
Ending WIP	10,000	100%	10000	30%	3000
Equivalent units of production	185,000		185000		178000

Cost per equivalent unit	Direct Materials	Conversion Costs	Totals
Inventory in process, beginning	1,500	4000	5,500
Costs added during the period	54000	352000	406,000
Total costs to account for	55,500	356,000	411,500
Total equivalent units	185000	178000
Cost per equivalent unit [Total costs/ Total equivalent units]	0.30	2.0	2.30