Requirement: 1. Assume that the company uses the weighted-average method of acco

Question

Requirement:
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 Cost per equivalent unit to 2 decimal places and the final answer to the nearest dollar amount. )

Cost of ending work in process inventory:

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: Percent Complete Work in process inventory, May 1 Work in process inventory, May 31 Units Materials Conversion 59,000 65% 39,000 40% 20% 25% 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 49,600 S 13,900 253,400 273.400 $337,660 $199,812

Explanation / Answer

No.of units produced with Material consumed during May

=(1-0.65)*(59000)+253400+0.40*39000

         289,650

Material Cost/Per Unit

=$337,660/289650

$            1.17

No.of units produced with Conversion consumed during May

=(1-0.30)*59,000+253,400+0.2*39,000

         302,500

Conversion Cost / Per Unit

=$199,812/302,500

$            0.66

Answer 1

Materials

Conversion

Equivalents units of production

         289,650

         302,500

Answer 2

Materials

Conversion

Cost per equivalent unit

$            1.17

$             0.66

Answer 3

Cost of ending work in process inventory

=(40%*39000*$1.17)+(20%*39000*$0.66)

$        23,400

Cost of units completed and transferred out

=273,400*($1.17+$0.66)

$      500,322

No.of units produced with Material consumed during May

=(1-0.65)*(59000)+253400+0.40*39000

         289,650

Material Cost/Per Unit

=$337,660/289650

$            1.17

No.of units produced with Conversion consumed during May

=(1-0.30)*59,000+253,400+0.2*39,000

         302,500

Conversion Cost / Per Unit

=$199,812/302,500

$            0.66

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