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 50,000 30,000 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 % $ 44,500 $ 11,700 248,000 268,000 $ 50,860 $ 169, 140 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 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. May

Answer 1

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A B C D E F G 1 2 1 3 Calculation of EUP Units completed during the period Ending work in process Equivalent Units of Production Units % Materials EUP Materials % Conversion EUP Conversion 268000 100% 268000 100% 268000 30000 100% 30000 20% 6000 298000 274000 4 5 6 7 2 Conversion Material 44500 8 11700 9 10 11 Cost per Equivalent unit of prodution Cost of beginning inventory Cost incurred during the period Total costs Equivalent units of production Cost per EUP 169140 180840 50860 95360 298000 0.32 274000 12 0.66 13 14 3 EUP Cost per EUP Total cost Total cost 15 16 Cost of units transferred out Costs of ending work in process Direct materials Conversion Total costs of ending work in process 30000 0.321 9600 3960 17 6000 0.66 18 13560 19 20 4 EUP Cost per EUP Total cost Total cost 21 22 Cost of units transferred out Cost of units transferred out Direct materials Conversion Total costs transferred out 268000 0.321 85760 176880 23 268000 0.66 24 2626401 25 26 KI Sheet185 Sheet186 Sheet187 Sheet188 Sheet189 Sheet190 Sheet191 Stats naudu

For calculation ref:

A B C D E F G 1 5 2 1 Calculation of EUP Units % Materials EUP Materials % Conversion EUP Conversion 3 Units completed during the period 268000 1 =C3D3 1 =F3*C3 4 Ending work in process 30000 1 =C4*D4 0.2 =F4*C4 5 Equivalent Units of Production =SUM(E3:E4) =SUM(G3:54) 6 7 2 Cost per Equivalent unit of prodution Material Conversion 8 Cost of beginning inventory 44500 11700 9 Cost incurred during the period 50860 169140 10 Total costs =SUM(D8:19) =SUM(F8:59) 11 Equivalent units of production =E5 =G5 12 Cost per EUP =D10/D11 =F10/F11 13 14 3 Cost of units transferred out EUP Cost per EUP Total cost Total cost 15 Costs of ending work in process 16 Direct materials =E4 1=D12 =C16*D16 17 Conversion =G4 =F12 =C17*D17 18 Total costs of ending work in process =SUM(E16:E17) 19 20 4 Cost of units transferred out EUP Cost per EUP Total cost Total cost 21 Cost of units transferred out 22 Direct materials =E3 =D12 =C22*D22 23 Conversion =G3 =F12 1=C23*D23 24 Total costs transferred out | =SUM(E22:E23) 25 26 KE Sheet185 Sheet186 Sheet187 Sheet188 Sheet189 Sheet190 Sheet191 Stats Ready