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 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 70,000 50, 000 40 % 100 % 100 % 25 % 56, 100 16,400 255,000 275,000 $ 112,900 $ 236,600 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. Conversion Materials 325,000 Equivalent units of production 287,500

Answer 1

Helix Corporation Requirement 1 Weighted Average Method: Materials Conversion Units transferred to the next production department 275000 275000 Equivalent units in ending work in process inventory: Materials: 50000 x 100% complete 50000 Conversion : 50000 x 25% complete 12500 Equivalent units of Production 325000 287500 Requirement 2 Cost of Beginning Work in process Cost added during the period Total Cost(a) Equivalent units of production Cost per equivalent unit Materials Conversion 56100 16400 112900 236600 169000 253000 325000 287500 0.52 0.88 Requirement 3 Materials Conversion Total Ending work in process inventory Equivalent units (see above) Cost per equivalent unit (see above) Cost of ending work in process inventory 50000 0.52 26000 12500 0.88 11000 37000 Requirement 4 Materials Conversion Total Units completed and transferred out: Units transferred to next department Cost per equivalent unit (see above) Cost of units completed and transferred out 275000 0.52 143000 275000 0.88 242000 385000