Question

Helix Corporation 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 73,000 85 % 50 % Work in process inventory, May 31 53,000 60 % 30 % Materials cost in work in process inventory, May 1 $ 57,900 Conversion cost in work in process inventory, May 1 $ 17,000 Units started into production 251,200 Units transferred to the next production department 271,200 Materials cost added during May $ 393,570 Conversion cost added during May $ 244,261 Required:

1. Assume that the company uses the weighted-average method of accounting for units and costs. Determine the equivalent units for May for the first process.

2. Compute the costs per equivalent unit for May for the first process. (Round your answers to 2 decimal places.)

3. Determine the total cost of ending work in process inventory and the total cost of units transferred to the next process in May. (Round your intermediate calculations to 2 decimal places.)

Answer 1

Total costs accounted for
Costs of beginning goods in process	74900
Costs incurred this period	637831
Total costs to account for:	712731
Total costs accounted for	712731
Difference due to rounding cost/unit	0
Units to account for:
Beginning goods in process inventory ­ units	73000
Units started this period	251200
Total units to account for	324200
Total units accounted for:
Units completed and transferred out	271200
Ending goods in process ­ units	53000
Total units accounted for	324200
Equivalent units of production (EUP)­ weighted average method
	Units	% Materials	EUP­ Materials	% Conversion	Conversion
Units completed and transferred out	271200	100.00%	271200	100.00%	271200
Ending goods in process ­ units	53000	60%	53000	30%	15900
Equivalent unit of Production	324200		324200		287100
Cost Per Equivalent unit of Production			Direct Material		Conversion
Costs of beginning goods in process			57900		17000
Costs incurred this period			393570		244261
Total Costs		Costs	451470	Costs	261261
Equivalent Unit of Production			324200		287100
Cost Per Equivalent unit of Production			1.39		0.91
Total costs accounted for
Cost of Units Transferred out	EUP	Cost Per EUP	Total Cost
Direct Material	271200	1.39	377,663.99
Conversion	271200	0.91	246,792.00
Total Cost Transferred out			624,455.99
Cost of Ending Work in Progress	EUP	Cost Per EUP	Total Cost
Direct Material	53000	1.39	73,806.01
Conversion	15900	0.91	14,469.00
Total Cost of Ending Work in Progress			88,275.01