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	53,000	100	%		30	%
Work in process inventory, May 31	33,000	100	%		20	%
Materials cost in work in process inventory, May 1				$	46,100
Conversion cost in work in process inventory, May 1				$	12,400
Units started into production					249,800
Units transferred to the next production department					269,800
Materials cost added during May				$	59,880
Conversion cost added during May				$	178,316

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.

Calculate the first production department's equivalent units of production for materials and conversion for May. Materials Conversion Equivalent units of production

Answer 1

		Units
Reconciliation of Units
A	Opening WIP	53,000
B	Introduced	249,800
C=A+B	TOTAL	302,800
D	Transferred	269,800
E=C-D	Closing WIP	33,000

Requirement 1

	Material	Conversion
Equivalent Units of Production	302,800	276,400

Working for Requirement 1

Statement of Equivalent Units
		Material		Conversion Cost
	Units	Complete %	Equivalent units	Complete %	Equivalent units
Transferred	269,800	100%	269,800	100%	269,800
Closing WIP	33,000	100%	33,000	20%	6,600
Total	302,800	Total	302,800	Total	276,400

Requirement 2

	Material	Conversion
Cost per equivalent Unit	$     0.35	$   0.69

Working for Requirement 2

Cost per Equivalent Units
COST	Material	Conversion Cost	TOTAL
Beginning WIP Inventory Cost	$       46,100	$     12,400	$                  58,500
Cost incurred during period	$       59,880	$   178,316	$                238,196
Total Cost to be accounted for	$     105,980	$   190,716	$                296,696
Total Equivalent Units	302,800	276,400
Cost per Equivalent Units	$ 0.35	$ 0.69

Requirement 3

	Material	Conversion	Total
Cost of ending Inventory	$    11,550	$          4,554	$     16,104

Working for Requirement 3

Statement of cost
Cost	Equivalent Cost/unit	Ending WIP
		Units	Cost Allocated
Material	$ 0.35	33,000	$ 11,550
Conversion Cost	$ 0.69	6,600	$    4,554
		TOTAL	$ 16,104

Requirement 4

	Material	Conversion	Total
Cost of Units Completed and Transferred out	$    94,430	$     186,162	$     280,592

Working for Requirement 4

Statement of cost
Cost	Equivalent Cost/unit	Transferred
		Units	Cost Allocated
Material	$ 0.35	269,800	$      94,430
Conversion Cost	$ 0.69	269,800	$    186,162
		TOTAL	$    280,592