Question

Chapter 4 Method [LO4-2, LO4-3, L04-4) 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 64.000 44,000 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 1005 255 $ 52,400 $ 15,100 252,000 272.000 $ 92,960 $ 216,960 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. ces 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 RECIO Required 2 >

Answer 1

Solution

	Material	Conversion
Equivalent Units of Production	316,000	283,000

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	Material	Conversion
Cost per equivalent Unit	$ 0.46	$ 0.82

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	Material	Conversion	Total
Ending Inventory	$ 20,240	$ 9,020	$ 29,260

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	Material	Conversion	Total
Units Completed and transferred	$ 125,120	$ 223,040	$ 348,160

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Working

Statement of Equivalent Units(Weighted average)
				Material		Conversion
	Units			Complete %	Equivalent units	Complete %	Equivalent units
Transferred out	272,000			100%	272,000	100%	272,000
Ending WIP	44,000			100%	44,000	25%	11,000
Total	316,000			Total	316,000	Total	283,000

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Cost per Equivalent Units (Weighted average)
COST		Material	Conversion	TOTAL
Beginning WIP Inventory Cost (A)		$ 52,400	$ 15,100	$ 67,500
Cost incurred during period (B)		$ 92,960	$ 216,960	$ 309,920
Total Cost to be accounted for (C=A+B)		$ 145,360	$ 232,060	$ 377,420
Total Equivalent Units(D)		316,000	283,000
Cost per Equivalent Units (E=C/D)		$ 0.46	$ 0.82	$ 1.28

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Statement of cost (Weighted average)
Cost	Equivalent Cost/unit	Ending WIP		Transferred
		Units	Cost Allocated	Units	Cost Allocated
Material	$ 0.46	44,000	$          20,240.00	272,000	$        125,120.00
Conversion	$ 0.82	11,000	$             9,020.00	272,000	$        223,040.00
TOTAL	$ 377,420	TOTAL	$ 29,260	TOTAL	$ 348,160