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	59,000	100	%		30	%
Work in process inventory, May 31	39,000	100	%		20	%
Materials cost in work in process inventory, May 1				$	49,600
Conversion cost in work in process inventory, May 1				$	13,900
Units started into production					253,400
Units transferred to the next production department					273,400
Materials cost added during May				$	59,740
Conversion cost added during May				$	199,812

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.

Compute the first production department's cost per equivalent unit for materials and conversion for May. (Round your answers to 2 decimal places.)

	Materials Conversion Cost per equivalent unit

Answer 1

Solution 1
Equivalent units of production (EUP)
	Units	% material	EUP-Materials	% Conversion	EUP- Conversion
Units Completed and transferred out	273400	100%	273400	100%	273400
units of Ending work in process	39000	100%	39000	20%	7800
Equivalent units of production			312400		281200
Solution 2
Cost per Equivalent unit:	Material	Conversion
Cost of Beginning Work in Process	$49,600	$13,900
Cost added during the month	$59,740	$1,99,812
Total Costs	$1,09,340	$2,13,712
/Equivalent units of Production	312400	281200
Cost per Equivalent unit of Production	$0.35	$0.76

Solution 3:

Cost of ending work in process	EUP	Cost per EUP	Total Cost
Material	39000	$0.35	$13,650
Conversion	7800	$0.76	$5,928
Total Ending work in process			$19,578

Solution 4:

Cost of Units Transferred Out	EUP	Cost per EUP	Total Cost
Material	273400	$0.35	$95,690
Conversion	273400	$0.76	$2,07,784
Total transferred out			$3,03,474