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 62,000 42,000 Work in process inventory, May 1 Work in process inventory, May 31 Materials cost in work in process inventory, May 1 Conversion cost in work in process inventory, May 1 Units started into production Units transferred to the next production department Materials cost added during May Conversion cost added during May Percent Complete Materials Conversion 100% 30 % 100 20 % $ 51,300 $ 14,600 255,200 275,200 $ 91,440 $ 209,444 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. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Calculate the first production department's equivalent units of production for materials and conversion for May. Materials Conversion Equivalent units of production 1 Nout

Answer 1

1. Equivalent units of production

	Materials	Conversion
Units transferred to the next production department	275,200	275,200
Units in Ending Work-in-process	42,000	8,400
Equivalent units of production	317,200	283,600

2.

	Materials	Conversion
Cost of beginning WIP	$51,300	$14,600
Add: Costs added during the period	$91,440	$209,444
Total costs	$142,740	$224,044
÷ Equivalent units of production	317,200	283,600
Cost per equivalent unit	$0.45	$0.79

3. Cost of Ending Work-in-process

Materials=42,000×$0.45=$18,900

Conversion=8,400×$0.79=$6,636

Cost of ending inventory =$25,536

4. Cost of units transferred tonext production department

Materials =275,200×$0.45=$123,840

Conversion= 275,200×$0.79=$217,408

Total cost of units transferred =$341,248