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    Weighted-Average Method for Accounting

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    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
    Units Materials Conversion
    Work in process inventory, May 1 6,800 85% 65%
    Work in process inventory, May 31 11,500 75% 40%
    ________________________________________

    Materials cost in work in process inventory, May 1 $2,500
    Conversion cost in work in process inventory, May 1 $5,500
    Units started into production 160,700
    Units transferred to the next production department 156,000
    Materials cost added during May $56,000
    Conversion cost added during May $359,000
    ________________________________________

    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

    ________________________________________

    Compute the costs per equivalent unit for May for the first process. (Round your answers to 2 decimal places. Omit the "$" sign in your response.)

    Materials Conversion
    Cost per equivalent unit $
    $

    ________________________________________

    (a) Determine the total cost of ending work in process inventory. (Round your Cost per equivalent unit to 2 decimal places and the final answer to the nearest dollar amount. Omit the "$" sign in your response.)

    Materials Conversion Total
    Cost of ending work in process inventory $
    $
    $

    ________________________________________

    (b) Determine 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. Omit the "$" sign in your response.)

    Materials Conversion Total
    Cost of units completed and transferred out $
    $
    $

    ________________________________________.

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    https://brainmass.com/business/accounting/weighted-average-method-accounting-374503

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    (a) Cost per equivalent unit = Total cost/Total equivalent units
    Total cost = Cost of beginning inventory + cost added in the month
    Material - Total cost = 2,500 + 56,000= ...

    Solution Summary

    The solution uses the weighted-average method for accounting to determine the equivalent units for the first process.

    $2.19

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