Question

Method (L04-2, L04-3, L04-4) 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 Work in process inventory, May 1. Work in process inventory, May 31 Materials cost in work in process inventory, May Percent Complete Units Materials Conversion 80,000 100 % 30 % 60,000 100% 20 % $ 62,400 Conversion cost in work in process inventory, May Units started into production Units transferred to the next production department Materials cost added during May Conversion cost added during May $ 19,000 266,000 286,000 $152,120 $273, 040 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 material conversion

Answer 1

1) Equivalent unit

	Material	Conversion
Unit transferred out	286000	286000
Ending work in process	60000	60000*20% = 12000
Equivalent unit	346000	298000

2) Cost per equivalent unit

	Material	Conversion
Beginning WIP	62400	19000
Cost added	152120	273040
Total cost	214520	292040
Equivalent unit	346000	298000
Cost per equivalent unit	0.62	0.98

3) Cost of ending work in process

	Material	Conversion	Total
Cost of ending WIP	60000*.62 = 37200	12000*.98 = 11760	48960

4) Cost of unit transferred out

	Material	Conversion	Total
Cost of unit transferred out	286000*.62 = 177320	280280	457600