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: Percent Complete Units Conversion Materials 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 50,000 30,000 100 30 100 20 44,500 11,700 S 248,000 268,000 50,860 Conversion cost added during May 169,140 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

Helix Corporation Requirement 1 Weighted Average Method: Materials Conversion Units transferred to the next production department Equivalent units in ending work in process inventory: Materials :30000 units x 100% complete 268000 268000 30000 Conversion 30000 units x 20% complete 6000 Equivalent units of production 000 Requirement 2: Materials Conversion Cost of beginning work in process Cost added during the period Total Cost (a) 44500 11700 50860 169140 95360 180840 Equivalent units of production (b) 298000 274000 Cost per equivalent unit (a)/(b) 0.32 0.66 Requirement 3&4 Materials Conversion Total Ending Work in process inventory Equivalent units (see below) 30000 6000 Cost per equivalent (see above) 0.32 0.66 Cost of ending work in process inventory 9600 3960 13560 Units Completed & transferred out Units transferred to next department 268000 268000 Cost per equivalent (see above) 0.32 0.66 Cost of units completed & transferred out 176880 85760 262640