Question

I need help with 1-4

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. Percent Complete Units Materials Conversion Work in process inventory, May 1 53,800 1004 309 Work in process inventory, May 31 33,000 1004 200 Materials cost in work in process inventory, May 1 $ 46, 100 Conversion cost in work in process inventory, May 1 $ 12,400 Units started into production 249,880 Units transferred to the next production department 269,800 Materials cost added during May $ 59,880 Conversion cost added during May $178, 316 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

1) Under weighted average method, equivalent units are to be calculated only for units completed & transferred out and units lying as ending work in process as it is assumed that the units once entered into the process become integral part of total units and no segregation between units transferred from beginning work in process and introduced during current process. Conversion cost includes Labor + Overheads. So, % of completion of beginning Work in Process Inventory doesn't affect the calculation of equivalent units of production. Therefore, Physical Units of production: Units completed and transferred out Add: Units in ending inventory Less: Units in beginning inventory Units started during current period 269,800 33,000 -53,000 249,800 Units in beginning inventory Add: Units started during the period Physical units to be accounted for 53,000 249,800 [As calculated] 302,800 Particulars % Materials Completed and transferred Ending work in process Equivalent Units of Production (EUP) Physical Units 269,800 33,000 302,800 100% 100% EUP- % EUP- Materials Conversion Conversion 269,800 100% 269,800 [269800 units x 100%; 269800 units x 100%] 33,000 20% 6,600 [33000 units x 100%; 33000 units x 20%] 302,800 276,400 NOTE: As materials are added at the beginning of the process itself, percentage of completion for materials is 100% in ending inventory.

2) Cost per equivalent units of production Cost of beginning work in process Cost added during the period Total Costs Equivalent units of Production (EUP) Cost per Equivalent units of Production Materials $46,100 $59,880 $105,980 302,800 $0.35 Conversion $12,400 $178,316 $190,716 276,400 [As computed EUP schedule presented above] $0.69 ($105980 / 302800 units = $0.35; $190716 / 276400 units = $0.69] 3) Cost per Cost of ending work in process EUP Totals EUP Materials 33,000 6,600 $0.35 $0.69 Conversion Total Cost of ending work in process $11,550 [33000 units x $0.350] $4,554 [6600 units x $0.69] $16,104 4) Cost per Cost of goods completed & transferred EUP Totals Materials 269,800 Conversion 269,800 Total Cost of goods completed & transferred EUP $0.35 $0.69 $94,430 [269800 units x $0.350] $186,162 [269800 units x $0.69] $280,592