Question

Hellx 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 81,000 100% sex Work in process inventory, May 31 61, eee 100% 30% Materials cost in work in process inventory, May 1 $ 63,000 Conversion cost in work in process inventory, May 1 $ 18,800 Units started into production 254,400 Units transferred to the next production department 274,40e Materials cost added during May $ 155,010 Conversion cost added during May $ 270,973 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

PARTICULARS	Materials	Conversion
Equivalent units of production	3,35,400.00	1,55,500.00
PARTICULARS	Materials	Conversion
Cost per equivalent unit	0.65	1.86
PARTICULARS	Materials	Conversion	Total
Cost of ending work in process inventory	1,78,360.00	5,10,384.00	6,88,744.00
	(274400*.65)	(274400*1.86)
Units to account for		Materials	Conversion
		%	Units	%	Units
Beginning WIP	81,000.00
Started in process	2,54,400.00
Total units to account for	3,35,400.00
Units accounted for:
Started and completed	2,74,400.00	100%	2,74,400.00	50%	1,37,200.00
Ending WIP	61,000.00	100%	61,000.00	30%	18,300.00
Equivalent units of production	3,35,400.00		3,35,400.00		1,55,500.00
Cost per equivalent unit	Direct Materials	Conversion Costs	Totals
Inventory in process, beginning	63,000.00	18,800.00	81,800.00
Costs added during the period	1,55,010.00	2,70,973.00	4,25,983.00
Total costs to account for	2,18,010.00	2,89,773.00	5,07,783.00
Total equivalent units	3,35,400.00	1,55,500.00
Cost per equivalent unit
[Total costs/ Total equivalent units]	0.65	1.86	2.51