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: Percent Complete Units Materials Work in process inventory, May 1 5,000 100% Conversion 40% Work in process inventory, May 31 10,000 100% 30% Materials cost in work in process inventory, May 1 Conversion cost in work in process inventory, May 1 Units started into production $ 1,500 $ 4,000 180,000 Units transferred to the next production department Materials cost added during May 175,000 $ Conversion cost added during May 54,000 $ 352,000 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
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: Percent Complete Units Materials Work in process inventory, May 1 5,000 100% Conversion 40% Work in process inventory, May 31 10,000 100% 30% Materials cost in work in process inventory, May 1 Conversion cost in work in process inventory, May 1 Units started into production $ 1,500 $ 4,000 180,000 Units transferred to the next production department Materials cost added during May 175,000 $ Conversion cost added during May 54,000 $ 352,000 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
Chapter1: Financial Statements And Business Decisions
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Concept explainers
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
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Transcribed Image Text: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:
Percent Complete
Work in process inventory, May 1
Units
5,000
Materials
Conversion
100%
40 %
Work in process inventory, May 31
10,000
100%
30 %
Materials cost in work in process inventory, May 1
Conversion cost in work in process inventory, May 1
Units started into production
$ 1,500
$
4,000
180,000
Units transferred to the next production department
Materials cost added during May
175,000
Conversion cost added during May
$ 54,000
$ 352,000
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.
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