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	63,000	100	%		50	%
Work in process inventory, May 31	43,000	100	%		30	%
Materials cost in work in process inventory, May 1				$	51,800
Conversion cost in work in process inventory, May 1				$	14,700
Units started into production					247,200
Units transferred to the next production department					267,200
Materials cost added during May				$	352,540
Conversion cost added during May				$	212,181

    

Required:

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. Materials Conversion Equivalent units of production

    

   

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

    

   

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. Round your final answers to the nearest whole number.)   Total Cost of ending work in process inventory Cost of units completed and transferred out

    

Answer 1

1)
				Material	Conversion
Equivalent units of production				3,10,200	2,80,100
2)				Material	Conversion
Cost per equivalent unit				$           1.30	$            0.81
3)
				Total
Costs of ending work in process				$       66,499
Costs of Units transferred out				$     5,64,722
Workings:
i.	Equivalent units of production-weighted average method
			Units	% Material	EUP-Material	% Conversion	EUP-Conversion
Completed and transferrred out			2,67,200	100%	2,67,200	100%	2,67,200
Ending work in process			43,000	100%	43,000	30%	12,900
Total			3,10,200		3,10,200		2,80,100
ii.	Cost per equivalent units of production
					Material	Conversion	Total
	Beginning work in process				$         51,800	$       14,700	$       66,500
	Cost incurred in this period				$      3,52,540	$    2,12,181	$    5,64,721
	Total costs				$      4,04,340	$    2,26,881	$    6,31,221
	÷Equivalent units				3,10,200	2,80,100
	Cost per equivalent units				$            1.30	$          0.81
iii.	Total costs acconted for:
	Cost of units trasferred out:			EUP	Cost per EUP	Total costs
	Direct Material			2,67,200	$            1.30	$    3,48,290
	Conversion			2,67,200	$            0.81	$    2,16,432
	Total costs transferred out						$    5,64,722
	Cost of ending work in process:
	Direct Material			43,000	$            1.30	$       56,050
	Conversion			12,900	$            0.81	$       10,449
	Total costs of ending work in process						$       66,499
	Total costs accounted for						$    6,31,221