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 60,000 100 % 50 % Work in process inventory, May 31 40,000 100 % 30 % Materials cost in work in process inventory, May 1 $ 50,200 Conversion cost in work in process inventory, May 1 $ 13,900 Units started into production 246,000 Units transferred to the next production department 266,000 Materials cost added during May $ 78,320 Conversion cost added during May $ 200,160 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

Answer No:	Helix Company
	For the month ended May 31
		Actual Units
	Calculation of Physical UNITS:
	Units in beginning inventory	60000
	Units started during the period	246000
	Units to be accounted for	306000
		Actual Units	Equivalent Units
			Material	Conversion
	Units Completed and Transferred	266000	266000	266000
	Units in ending inventory	40000	40000	12000
1)	Equivalent Units of PRODUCTION		306,000	278,000
	Costs:
			Material	Conversion	Total
	Costs in beginning inventory		50,200	13,900	64,100
	Cost added during the year		200,160	78,320	278,480
	Total cost to account for		250,360	92,220	342,580
	Equivalent Units from above		306,000	278,000
2)	Cost per equivalent unit		0.82	0.33
			Material	Conversion	Total
	Cost Accounted for
3)	Units in ending inventory		32,727	3,981	36,708
4)	Units completed and transfer		217,633	88,239	305,872
	Total Cost Accounted for		250,360	92,220	342,580