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	71,000	100	%		30	%
Work in process inventory, May 31	51,000	100	%		20	%
Materials cost in work in process inventory, May 1				$	56,700
Conversion cost in work in process inventory, May 1				$	16,800
Units started into production					260,600
Units transferred to the next production department					280,600
Materials cost added during May				$	125,680
Conversion cost added during May				$	242,012

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

Answer No:	Helix Company
	For the month ended May 31
		Actual Units
	Calculation of Physical UNITS:
	Units in beginning inventory	71000
	Units started during the period	260600
	Units to be accounted for	331600
		Actual Units	Equivalent Units
			Material	Conversion
	Units Completed and Transferred	280600	280600	280600
	Units in ending inventory	51000	51000	10200
1)	Equivalent Units of PRODUCTION	331600	331,600	290,800
	Costs:
			Material	Conversion	Total
	Costs in beginning inventory		56,700	16,800	73,500
	Cost added during the year		125,680	242,012	367,692
	Total cost to account for		182,380	258,812	441,192
	Equivalent Units from above		331,600	290,800
2)	Cost per equivalent unit		0.55	0.89
			Material	Conversion	Total
	Cost Accounted for
3)	Units in ending inventory		28,050	9,078	37,128
4)	Units completed and transfer		154,330	249,734	404,064
	Total Cost Accounted for		182,380	258,812	441,192