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	62,000	100	%		30	%
Work in process inventory, May 31	42,000	100	%		20	%
Materials cost in work in process inventory, May 1				$	51,300
Conversion cost in work in process inventory, May 1				$	14,600
Units started into production					255,200
Units transferred to the next production department					275,200
Materials cost added during May				$	91,440
Conversion cost added during May				$	209,444

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

Solution 1
Equivalent units of production (EUP)
	Units	% material	EUP-Materials	% Conversion	EUP- Conversion
Units Completed and transferred out	275200	100%	275200	100%	275200
units of Ending work in process	42000	100%	42000	20%	8400
Equivalent units of production			317200		283600

Solution 2
Cost per Equivalent unit:	Material	Conversion
Cost of Beginning Work in Process	$51,300	$14,600
Cost added during the month	$91,440	$2,09,444
Total Costs	$1,42,740	$2,24,044
/Equivalent units of Production	317200	283600
Cost per Equivalent unit of Production	$0.45	$0.79

Solution 3
Cost of ending work in process	EUP	Cost per EUP	Total Cost
Material	42000	$0.45	$18,900
Conversion	8400	$0.79	$6,636
Total Ending work in process			$25,536

Solution 4
Cost of Units Transferred Out	EUP	Cost per EUP	Total Cost
Material	275200	$0.45	$1,23,840
Conversion	275200	$0.79	$2,17,408
Total transferred out			$3,41,248