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 74,000 65 % 30 % Work in process inventory, May 31 54,000 40 % 20 % Materials cost in work in process inventory, May 1 $ 58,800 Conversion cost in work in process inventory, May 1 $ 17,500 Units started into production 262,400 Units transferred to the next production department 282,400 Materials cost added during May $ 400,240 Conversion cost added during May $ 252,244

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

Requirement 1

		Units
Reconciliation of Units
A	Opening WIP	74,000
B	Introduced	262,400
C=A+B	TOTAL	336,400
D	Transferred	282,400
E=C-D	Closing WIP	54,000

Statement of Equivalent Units
		Material		Conversion Cost
	Units	Complete %	Equivalent units	Complete %	Equivalent units
Transferred	282,400	100%	282,400	100%	282,400
Closing WIP	54,000	100%	54,000	20%	10,800
Total	336,400	Total	336,400	Total	293,200

	Material	Conversion
Equivalent Units of Production	336,400	293,200

Requirement 2

Cost per Equivalent Units
COST	Material	Conversion Cost	TOTAL
Beginning WIP Inventory Cost	$    58,800	$          17,500	$             76,300
Cost incurred during period	$ 400,240	$        252,244	$           652,484
Total Cost to be accounted for	$ 459,040	$        269,744	$           728,784
Total Equivalent Units	336,400	293,200
Cost per Equivalent Units	$         1.36	$               0.92

	Material	Conversion
Cost per equivalent Unit	$ 1.36	$ 0.92

Requirement 3

Statement of cost
Cost	Equivalent Cost/unit	Ending WIP		Transferred
		Units	Cost Allocated	Units	Cost Allocated
Material	$ 1.36	54,000	$ 73,440	282,400	$        385,600
Conversion Cost	$ 0.92	10,800	$ 9,936	282,400	$        259,808
TOTAL	$ 728,784	TOTAL	$          83,376	TOTAL	$        645,408

	Material	Conversion	Total
Units Completed	$           385,600	$ 259,808	$        645,408
Ending Inventory	$              73,440	$       9,936	$          83,376
Total Cost Accounted for	$           459,040	$ 269,744	$        728,784

If any answer does not match please leave a comment so that I can help.

Alternate solution for requirement 3

Statement of cost
Cost	Equivalent Cost/unit	Ending WIP		Transferred
		Units	Cost Allocated	Units	Cost Allocated
Material	$ 1.36	54,000	$          74,976	282,400	$        384,064
Conversion Cost	$ 0.92	10,800	$             9,936	282,400	$        259,808
TOTAL	$           728,784	TOTAL	$          84,912	TOTAL	$        643,872

	Material	Conversion	Total
Units Completed	$           384,064	$ 259,808	$        643,872
Ending Inventory	$              74,976	$       9,936	$          84,912
Total Cost Accounted for	$           459,040	$ 269,744	$        728,784