Helix Corporation produces prefabricated flooring in a series of steps carried o

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 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 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.

Explanation / Answer

Work in progress, May 1 5,000 100% 40% Units started into production 180,000 Units completed and transferred 175,000 out of department A Work in progress, May 31 10,000 100% 30% 2 Materials Conversion Units completed and transferred out of department A 175,000 175,000 Work in progress, may 31 10,000 units x 100% 10,000 10,000 units x 30% 3,000 Equivalent units of production in the department 185,000 178,000 3 a) Cost to be accounted for: Total Cost Materials Conversion Work in progress, Beg 5,500 1,500 4,000 Cost added in department 406,000 54,000 352,000 Total cost 411,500 55,500 356,000 Equivalent units 185,000 178,000 Cost per equivalent unit $0.30 $2.00 Total cost per equivalent units $2.30 b) Cost of ending work in progress and units transferred out Materials Conversion Total Cost Ending WIP: Equivalent units 10,000 3,000 Cost per equivalent unit $0.30 $2.00 Cost of ending WIP $3,000 $6,000 $9,000 Units transferred 175,000 175,000 Cost per equivalent unit $0.30 $2.00 Cost of units transferred out $52,500 $350,000 $402,500

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