Required Prepare journal entries showing the flow of costs through the two proce

Question

Required Prepare journal entries showing the flow of costs through the two processing departments during April. EXERCISE 4-8 Equivalent Units and Cost per Equivalent Unit-Weighted-Average Method [Lo42 LO4-3, LO4-4] Helix Corporation produces prefabricated flooring in a series of steps carried out in production depart ments. All of the material that is used in the first production department is added at the beginning of pro cessing in that department. Data for May for the first production department follow: Percent Complete Units Materials Conversion 100% 100% 40% 30% 5,000 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...... $1,500 $4,000 180,000 175,000 $54,000 $352,000 Required: me that the company uses the weighted-average method of accounting for units and costs Determine the equivalent units for May for the first process. Compute the costs per equivalent unit for May for the first process Determine the total cost of ending work in process inventory and the total cost of units transferred to the next process in May 1. Assu 2. XERCISE Equivalent Units and Cost per Equivalent Unit-Weighted-Average Method [LO4-2, LO4-3] TAKE

Explanation / Answer

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. Material Conversion Units transferred to the next production department 175,000.00 175,000.00 Ending work in process: Materials: 10,000 units × 100% complete 10,000 Conversion: 10,000 units × 30% complete 3,000 Equivalent units of production 185,000.00 178,000.00 Requirement 2: Compute the costs per equivalent unit for May for the first process Material Conversion Cost of beginning work in process $1,500.00 $4,000.00 Cost added during the period $54,000.00 $352,000.00 Total cost (a) $55,500.00 $356,000.00 Equivalent units of production (b) 185,000.00 178,000.00 Cost per equivalent unit (a) ÷ (b) $0.30 $2.00 Requirement 3: a) Determine the total cost of ending work in process inventory Material Conversion Total Ending work in Process = 10,000 x $.30 ; 3000 x $2 $3,000.00 $6,000.00 $9,000.00 (b) Determine the total cost of units transferred to the next process in May Cost of units completed and transferred out (175,000 x $.30;175,000 x $2) $52,500.00 $350,000.00 $402,500.00

Related Questions

Navigate

• Browse (All)
• Browse R
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.