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	Materials			Conversion
Work in process inventory, May 1	71,000	100	%		30	%
Work in process inventory, May 31	51,000	100	%		20	%
Materials cost in work in process inventory, May 1				$	56,700
Conversion cost in work in process inventory, May 1				$	16,800
Units started into production					260,600
Units transferred to the next production department					280,600
Materials cost added during May				$	125,680
Conversion cost added during May				$	242,012

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. Calculate the first production department's equivalent units of production for materials and conversion for May
Helix Corporation
First Production Department
Production Cost Report
For the Month Ended May 31
UNITS			Equivalent Units
	Physical Units	% complete	Materials	% complete	Conversion
Units to be accounted for:
Work in process, May 1	71000
Started into production	260600
Total units	331600
Units accounted for:
Units transferred to the next production department	280600	100%	280600	100%	280600
Work in process, May 31	51000	100%	51000	20%	10200
Total units to be assigned costs	331600		331600		290800
2. Compute the first production department's cost per equivalent unit for materials and conversion for May
COSTS	Costs
	Materials	Conversion	Total
Unit Costs
Cost of beginning Work in process	$            56,700	$            16,800	$             73,500
Total Costs added during May	$          125,680	$          242,012	$           367,692
Total Cost to be accounted for	$          182,380	$          258,812	$           441,192
	÷	÷
Equivalent units	331600	290800
Cost per equivalent unit	$0.55	$0.89	$1.44
Cost to be accounted for
Work in process, May 1			$             73,500
Started into production			$           367,692
Total Cost to be accounted for			$           441,192
3. Compute the first production department's cost of ending work in process inventory for materials, conversion, and in total for May
	Equivalent units	Cost per equivalent unit	Total
Cost of Ending Work in proces inventory
Materials	51000	$0.55	$28,050
Conversion Costs	10200	$0.89	$9,078
Cost of Ending Work in proces inventory			$37,128
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
	Equivalent units	Cost per equivalent unit	Total
Cost of units units transferred to the next production department in May
Materials	280600	$0.55	$154,330
Conversion Costs	280600	$0.89	$249,734
Cost of units units transferred to the next production department in May			$404,064

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