Question

Helix Corporation uses the weighted average method in its process costing system. It procuces prefabricated flooring in a series of steps caried out in production departments. All of the material that is used in the first production department is added at the beginning of processin in that department. Data for May for the first production department is added at the beginning of production deparment follow:   

Percent Complete

Units Materials Conversion

Work in Porcess inventory May 1 51,000 100% 50%

Work in Process inventory May 31 31,000 100% 30%

Materials Cost in work in Process inventory May 1 $45,000

Conversion cost in work in process inventory May 1 $11,800

Units started into production 242,400

Units transferred to the next production department 262,400

Materials cost added during May $43,020

Conversion cost added during May $170,239

1. Calculate the first production deparment's equivalent units of production for materials and conversion for May

2. Compute the first production deparment'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 deparment's cost of the units transferred to the next production department for materials, conversion and in total for May

If you could please show as much clear detail about the calculations as possible:)

Thank you!

Answer 1

Requirement 1

		Units
Reconciliation of Units
A	Opening WIP	51,000
B	Introduced	242,400
C=A+B	TOTAL	293,400
D	Transferred	262,400
E=C-D	Closing WIP	31,000

Statement of Equivalent Units
		Material		Conversion Cost
	Units	Complete %	Equivalent units	Complete %	Equivalent units
Transferred	262,400	100%	262,400	100%	262,400
Closing WIP	31,000	100%	31,000	30%	9,300
Total	293,400	Total	293,400	Total	271,700

	Material	Conversion
Equivalent Units of Production	293,400	271,700

Requirement 2

Cost per Equivalent Units
COST	Material	Conversion Cost	TOTAL
Beginning WIP Inventory Cost	$    45,000	$          11,800	$             56,800
Cost incurred during period	$    43,020	$        170,239	$           213,259
Total Cost to be accounted for	$    88,020	$        182,039	$           270,059
Total Equivalent Units	293,400	271,700
Cost per Equivalent Units	$         0.30	$               0.67

	Material	Conversion
Cost per equivalent Unit	$ 0.30	$         0.67

Requirement 3

Statement of cost
Cost	Equivalent Cost/unit	Ending WIP
		Units	Cost Allocated
Material	$   0.300	31,000	$             9,300
Conversion Cost	$   0.670	9,300	$             6,231
		TOTAL	$          15,531

	Material	Conversion	Total
Ending Inventory	$          9,300	$       6,231	$          15,531

Requirement 4

Statement of cost
Cost	Equivalent Cost/unit	Transferred
		Units	Cost Allocated
Cost Transferred		-	$                    -
Material	$   0.300	262,400	$          78,720
Conversion Cost	$   0.670	262,400	$        175,808
		TOTAL	$        254,528

	Material	Conversion	Total
Units Transferred out	$        78,720	$ 175,808	$        254,528

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