Question

Helix Corporation 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	60,000	85	%		50	%
Work in process inventory, May 31	40,000	60	%		30	%
Materials cost in work in process inventory, May 1				$	50,200
Conversion cost in work in process inventory, May 1				$	13,900
Units started into production					246,000
Units transferred to the next production department					266,000
Materials cost added during May				$	341,300
Conversion cost added during May				$	200,160

    

Required: 1. Assume that the company uses the weighted average method of accounting for units and costs. Determine the equivalent units for May for the first process. Materials Conversion Equivalent units of production 2. Compute the costs per equivalent unit for May for the first process. (Round your answers to 2 decimal places.) Materials Conversion Cost per equivalent unit 3. Determine the total cost of ending work in process inventory and the total cost of units transferred to the next process in May. (Round your intermediate calculations to 2 decimal places.) Total Cost of ending work in process inventory Cost of units completed and transferred out

Answer 1

Material 290,000 1 Equivalent units in production Conversion 278,000 2 Cost per equivalent unit $1.35 $0.77 3 Cost of ending work in process inventory Cost of units completed and transferred out $41,640 $563,920 Conversion Units completed & transferred out Work in process inventory, May 31 Total units Physical Units 266,000 40,000 306,000 Equivalent Units Materials 266,000 24,000 290,000 100% 60% 100% 30% 266,000 12,000 278,000 Material Conversion Costs per equivalent unit of production Work in process inventory, May 1 Cost added during May Total costs Divided by Equivalents units of production Costs per equivalent unit of production $50,200 $341,300 $391,500 290,000 $1.35 $13.900 $200,160 $214,060 278,000 S0.77 EUP 266,000 266,000 Costs of units transfrred out: Direct materials Conversion Total costs transferred out Costs of ending work in process Direct materials Conversion Work in process, Ending Total costs accounted for Cots per EUP Total cost $1.35 $359,100 $0.77 $204,820 $563,920 Cots per EUP Total cost $1.35 $32,400 $0.77 $9,240 $41,640 EUP 24,000 12,000 $605,560