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 76,00 56,000 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% 25% $ 60,000 $ 17,800 258,000 278,000 $ 133, 720 $ 256,680 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. Materials Conversion Equivalent units of production Required 2 >

Answer 1

Question 1

Statement of Equivalent Units of Production

Using Weighted Average Method

Particulars	Units	% Materials	EUP Materials	% Conversion	EUP Conversion
Units Transferred Out during the Year	278,000	100%	278,000	100%	278,000
Ending Work in Process	56,000	100%	56,000	25%	14,000
Total	334,000		334,000		292,000

Notes

EUP Stands for Equivalent Units of Production

EUP Materials = Units * % Materials

EUP Conversion = Units * % Conversion

Question 2

Calculation of Cost per Equivalent Unit of Production

Particulars	Materials	Conversion
Cost of Beginning Work in Process	60,000	17,800
Add: Costs added during May	133,720	256,680
Total Costs	193,720	274,480
÷ Equivalent Units of Production	334,000	292,000
Equivalent Cost per Unit	0.58	0.94

Question 3

Cost of Ending Work in Process

Particulars	Materials	Conversion	Total
Equivalent units of Production for Ending Work in Process Inventory	56,000	14,000
* Equivalent Cost per Unit	0.58	0.94
Cost of Ending Work in Process Inventory	32,480	13,160	45,640

Question 4

Calculation of Costs of Units Transferred

Particulars	Materials	Conversion	Total
Units Transferred Out during the Year	278,000	278,000
* Equivalent Cost per Unit	0.58	0.94
Cost of Units Transferred Out	161,240	261,320	422,560