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:

Units	Materials			Conversion
Work in process inventory, May 1	79,000	100	%		50	%
Work in process inventory, May 31	59,000	100	%		30	%
Materials cost in work in process inventory, May 1				$	61,800
Conversion cost in work in process inventory, May 1				$	18,400
Units started into production					253,600
Units transferred to the next production department					273,600
Materials cost added during May				$	104,500
Conversion cost added during May				$	264,161

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

EQUIVALENT UNIT

	Physical unit	%	equivalent unit material	%	equivalent unit conversion cost
Unit completed & Transferred out	273600	100%	273600	100%	273600
Ending work in process	59000	100%	59000	30%	17700
Total			332600		291300

1) COST PER EQUIVALENT UNIT :

	Material	conversion cost
Beginning work in process	61800	18400
Cost incurred during period	104500	264161
Total cost	166300	282561
Equivalent unit	332600	291300
Cost per equivalent unit	0.50	0.97

3. Compute the first production department's cost of ending work in process inventory for materials, conversion, and in total for May.

	Material	Conversion	Total
Ending work in process	59000*.50=29500	17700*.97=17169	46669

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.

	Material	Conversion	Total
Unit transferred to next production	273600*.50=136800	273600*.97=265392	402192