Exercise 5-8 Equivalent Units; Cost per Equivalent Unit; Assigning Costs to Unit
ID: 2339169 • Letter: E
Question
Exercise 5-8 Equivalent Units; Cost per Equivalent Unit; Assigning Costs to Units-Weighted-Average Method [LO5-2, LO5-3, LO5-4]
Helix Corporation uses the weighted-average method in its process costing system. It 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:
Required:
1. Calculate the first production department's equivalent units of production for materials and conversion for May.
2. Compute the first production department's cost per equivalent unit for materials and conversion for May.
3. Compute the first production department's cost of ending work in process inventory for materials, conversion, and in total for May.
4. Compute the first production department's cost of the units transferred to the next production department for materials, conversion, and in total for May.
Percent Complete Units Materials Conversion Work in process inventory, May 1 75,000 100 % 50 % Work in process inventory, May 31 55,000 100 % 30 % Materials cost in work in process inventory, May 1 $ 59,400 Conversion cost in work in process inventory, May 1 $ 17,400 Units started into production 252,000 Units transferred to the next production department 272,000 Materials cost added during May $ 126,990 Conversion cost added during May $ 250,905Explanation / Answer
Solution 1:
Solution 2:
Solution 3 & 4:
Computation of Equivalent unit of Production - Weighted Average - First Production Department Particulars Physical Units Material Conversion Unit completed & Transferred out 272000 272000 272000 Closing WIP: 55000 Material (100%) 55000 Conversion (30%) 16500 Equivalent units of production 327000 327000 288500