10.00 points Helix Corporation produces prefabricated fooring in a series of ste

Question

10.00 points Helix Corporation produces prefabricated fooring 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 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 76.000 75% 56,000 50% 40% 25% Materials cost in work in process inventory May 1 Conversion cost in work n process inventory, May 1 Unts started into production Unts transferred to the next proaction department Materials cost added during May Conversion cost added during May S 60.000 5 17.800 258.000 278.000 $408.180 5256 680

Explanation / Answer

CALCULATION OF THE EQUIVALENT UNIT OF PRODUCTION Materail Conversion Date Unit % Complete Equivalent unit for Material Unit % Complete Equivalent unit for Conversion WIP as on May -01 76000 25% 19000 76000 60% 45600 WIP inventory as May , 31 56000 50% 28000 56000 25% 14000 Units Introduced and transferred out 278000 100% 278000 278000 100% 278000 Equivalent unit of production = 325000 337600 Answer =1 Material Conversion Equivalent unit of production = 325000 337600 Answer =2) Calculation of the cost per equivalent unit Material Conversion Opening Cost $                   60,000 $                     17,800 Cost Added During the month $               4,08,180 $                 2,56,680 Total Cost $               4,68,180 $                 2,74,480 Equivalent Cost per unit = Equivalent cost / Equivalent unit of production Equivalent Cost per unit = $                       1.44 $                          0.81 ($ 468,180 / 325000 units) ($ 274,480 / 337600 units) Answer = 3) CACLULATION OF TOTAL COST of ENDING WIP Material Conversion Total Ending Inventory in Units 28000 14000 Cost per unit $                       1.44 $                          0.81 Cost of Ending inbentory $             40,335.51 $               11,382.46 $         51,717.97 CACLULATION OF TOTAL COST UNITS COMPLETED AND TRANSFERRED OUT Material Conversion Total Units Completed and transferred 278000 278000 Cost per unit $                       1.44 $                          0.81 Total Cost of Units completed and transferred $         4,00,473.97 $           2,26,023.22 $     6,26,497.19

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