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 processing in that department. Data for May for the first production department
follow:
Percent Completed
Units Materials Conversion
Work in process inventory, May 1 .................. 5,000 100% 40%
Work in process inventory, May 31 ................ 10,000 100% 30%
Materials in work in process inventory, May 1 $1,500
Conversion cost in work in process inventory, May 1 $4,000
Units started into production 180,000
Units transferred to the next production department 175,000
Materials cost added during May $54,000
Conversion cost added during May $352,000
a) 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.
b) Compare the costs per equivalent unit for May for the first process.
c) Determine the total cost of ending work in process inventory and the total cost of units
transferred to the next process in May.