Question

Helix Corporation produces prefabricated flooring in a series of steps carried out in production departments. All of the material that is used in the first productiondepartment 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 6,000 100% 40%
Work in process inventory, May 31 11,500 100% 30%
________________________________________


Materials cost in work in process inventory, May 1 $1,500
Conversion cost in work in process inventory, May 1 $4,000
Units started into production 180,000
Units transferred to the next production department 175,000
Materials cost added during May $54,000
Conversion cost added during May $352,000
________________________________________

1. Assume that the company uses the weighted-average method of accounting for units and costs. Determine the equivalent units for May for the first process.


2.Compute the costs per equivalent unit for May for the first process. $


3.
(a)Determine the total cost of ending work in process inventory.
(b) Determine the total cost of units transferred to the next process in May.

Answer 1

	Physical Uniits	Material	%	Conversion	%
Units Tranfered to Next Production	175000	175000	100%	175,000	100%
WIP Ending	10000	10000	100%	3000	30%
Equivalent Units		185000		178,000

Cost Accounted For	Material	Conversion	Total
Opening WIP	1500	4000	5500
Cost Added During the Period	54000	352000	406000
Equivalent Units	185000	178,000
Cost Per Equivalent Units	0.29	1.98	2.27

Cost Of ending WIP
10000*.29	2919
3000*1.98	5933
Cost Of ending WIP	8852

Cost ou Units Tranfered To next Process
175000*2.27	397148