Exercise 4.8 Equivalent Units and Cost per Equivalent Unit-weighted Average Meth

Question

Exercise 4.8 Equivalent Units and Cost per Equivalent Unit-weighted Average Method [LO42, LO4-3, LO44) 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 ateria onve Work in process inventory, May Work in process inventory, May 31 Units 77,000 100% 57,000 100% 30% 20% 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 S 60,600 S 18,200 264,200 284,200 412.180 S 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 Conver Equivalent units of production 2. Compute the costs per equivalent unit for May for the first process. (Round your answers to 2 decimal places.) 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

Explanation / Answer

UNITS TO ACCOUNT FOR: Whole units Beginning WIP 77000 Units introduced during the period 264200 Total units to account for 341200 UNITS ACCOUNTED FOR: Equivalent Units Material Conversion Cost Units completed and transferred 284200 284200 284200 Ending WIP 57000 57000 11400 Total units accounted for 341200 341200 295600 Material Cost Conversion Cost Total Cost Beginning WIP cost 60600 18200 78800 Costs added during the period 412180 262620 674800 Total costs to account for 472780 280820 753600 Cost per equivalent unit 1.39 0.95 COSTS ACCOUNTED FOR: Cost of units completed and transferred out 395038 269990 665028 Cost of ending WIP 79230 10830 90060 Total costs accounted for 79230 10830 755088 ANSWERS: Difference in total costs accounted for is due to approximation of cost per equivalent unit. 1) Equivalent Units Whole units Material Conversion Cost Units completed and transferred 284200 284200 284200 Ending WIP 57000 57000 11400 Total units accounted for 341200 341200 295600 2) Cost per equivalent unit 1.39 0.95 3) Cost of units completed and transferred out 665028 Cost of ending WIP 90060

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