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I am trying to break this down so I will understand and able to do as well can y

ID: 2443127 • Letter: I

Question

I am trying to break this down so I will understand and able to do as well can you please assist to make this make since.

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

5,000    

100%

40%

  Work in process inventory, May 31

10,000    

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


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.

Materials

Conversion

  Equivalent units of production

   

   


Materials

Conversion

  Cost per equivalent unit

$      

$      

(a)

Determine the total cost of ending work in process inventory.

Materials

Conversion

Total

  Cost of ending work in process inventory

$

$

$

(b)

Determine the total cost of units transferred to the next process in May.

Materials

Conversion

Total

  Cost of units completed and transferred out

$

$   

$   

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:

Explanation / Answer

A. 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 B. 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 C. 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 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%
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