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	69,000	100	%		50	%
Work in process inventory, May 31	49,000	100	%		30	%
Materials cost in work in process inventory, May 1				$	55,600
Conversion cost in work in process inventory, May 1				$	16,100
Units started into production					249,600
Units transferred to the next production department					269,600
Materials cost added during May				$	87,770
Conversion cost added during May				$	231,241

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

1) Equivalent unit

	Whole unit	% Material	EUP-Material	% conversion	EUP-Conversion
Unit transferred out	269600	100%	269600	100%	269600
Ending WIP	49000	100%	49000	30%	14700
Total	318600		318600		284300

2) Cost per equivalent unit

	Material	Conversion
Beginning WIP	55600	16100
Cost added	87770	231241
Total cost	143370	247341
Equivalent unit	318600	284300
Cost per equivalent unit	0.45	0.87

3) Cost of ending WIP

	Direct material	Conversion	Total
Cost of ending WIP	22050	12789	34839

4) Cost of Unit transferred out

	Direct material	Conversion	Total
Cost of Unit transferred out	121320	234552	355872