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 66,000 100 % 50 % Work in process inventory, May 31 46,000 100 % 30 % Materials cost in work in process inventory, May 1 $ 53,900 Conversion cost in work in process inventory, May 1 $ 15,400 Units started into production 248,400 Units transferred to the next production department 268,400 Materials cost added during May $ 103,300 Conversion cost added during May $ 221,648 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)					Materials	Conversion
	Equivalent units of production				314,400	282,200
2)					Materials	Conversion
	Cost per Equivalent units				0.5	0.84
3)					Materials	Conversion	Total
	cost of ending work in process inventory				23000	11592	34592
4)					Materials	Conversion	Total
	cost of units completed & transferred out				134200	225,456	359656
	Beginning work in process			66,000	Completed and transferred			268,400
	Started during the year			248,400	ending work in process			46,000
	units to account for			314,400	units accounted for			314,400
	Equivalent units				%	materials	%	CC
	Completed and transferred			268,400	100%	268,400	100%	268,400
	ending work in process			46,000	100%	46,000	30%	13800
	Equivalent units					314,400		282,200
	cost per Equivalent units
					Materials	CC	total
	Beginning work in process				53,900	15,400	69,300
	cost added during the year				103,300	221,648	324,948
	total cost				157,200	237,048	394,248
	Equivalent units				314,400	282,200
	cost per Equivalent units				0.5	0.84	1.34
	cost of ending WIP
	mateirals		46,000	*	0.5	=	23000
	conversion		13800	*	0.84	=	11592
	total cost of ending WIP						34592
	cost of units transferred out
	materials		268,400	*	0.5	=	134200
	cc		268,400	*	0.84	=	225,456
	total						359656