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Weighted-Average Method for Accounting

Please see the attached file. Boxes underlined in yellow require an answer as well as a formula for the answer using the information provided.

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%
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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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Solution Preview

(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