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 5,000 10,000 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 % 40 % 100 % 30 % $ 1,500 $ 4,000 180,000 175,000 $ 54,000 $ 352,000 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

1)					Materials	Conversion
	Equivalent units of production				185,000	178,000
2)					Materials	Conversion
	Cost per Equivalent units				0.3	2
3)					Materials	Conversion	Total
	cost of ending work in process inventory				3000	6000	9000
4)					Materials	Conversion	Total
	cost of units completed & transferred out				52500	350,000	402500
	Working
	Beginning work in process			5,000	Completed and transferred			175,000
	Started during the year			180,000	ending work in process			10,000
	units to account for			185,000	units accounted for			185,000
	Equivalent units				%	materials	%	CC
	Completed and transferred			175,000	100%	175,000	100%	175,000
	ending work in process			10,000	100%	10,000	30%	3000
	Equivalent units					185,000		178,000
	cost per Equivalent units
					Materials	CC	total
	Beginning work in process				1,500	4,000	5,500
	cost added during the year				54,000	352,000	406,000
	total cost				55,500	356,000	411,500
	Equivalent units				185,000	178,000
	cost per Equivalent units				0.3	2	2.3
	cost of ending WIP
	mateirals		10,000	*	0.3	=	3000
	conversion		3000	*	2	=	6000
	total cost of ending WIP						9000
	cost of units transferred out
	materials		175,000	*	0.3	=	52500
	cc		175,000	*	2	=	350,000
	total						402500