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 comple
Units Materials Conversion
Work in process inventory, May 1 77,000 100% 30%
Work in process inventory, May 31 57,000 100% 20%
Materials cost in work in process inventory, May 1 $60,600
Conversion cost in work in process inventory, May 1 $18,200
Units started into production 264,200
Units transferred to the next production department 284,200
Materials cost added during May 412,180
Conversion cost added during May $262,620
Required:

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.

Materials Conversion
Equivalent units of production
2. Compute the costs per equivalent unit for May for the first process. (Round your answers to 2 decimal places.)

Materials Conversion
Cost per equivalent unit
3. Determine the total cost of ending work in process inventory and the total cost of units transferred to the next process in May (Round your intermediate calculations to 2 decimal places. Round your final answers to the nearest whole number.)

Total
Cost of ending work in process inventory
Cost of units completed and transferred out

Answer 1

Materials equivalent units

341,200

Conversion cost equivalent units

295,600

Materials Cost per unit: 1.39

Conversion cost per unit: 0.95

Transferred out $664,560

Ending WIP $90,060

Step-by-step explanation:

As we use weighted average we determinate equivalent units as follow:

completed units

+ percentage of completion ending work in process

Materials EU

284,200

+ 57,000 x 100%

341,200

Conversion cost EU

284,200 + 57,000 x 20% = 295,600

Cost per equivalent unit for W/A

(beginning + added)/ EU

Materials Cost per unit:

(60,600 + 412,180) / 341,200 = 1.3856 = 1.39

Conversion cost per unit:

(18,200 + 262,620)/ 295,600 = 0.95

Cost of unit transferred out:

284,000 x ( 1.39 + 0.95) = 664,560

Ending WIP

57,000 x 1.39 + 11,400 x 0.95 = 90,060