Helox Ltd manufactures a product that passes through two production processes. A quantity schedule for a recent month for the first process follows:

Costs in the beginning work in progress inventory of the first processing department were: materials, £1,200; and conversion cost, £3,800. Costs added during the month were: materials, £54,000; and conversion cost, £352,000.

Required
1. Assume that the company uses the weighted-average method of accounting for units and costs. Determine the equivalent units for the month for the first process.
2. Compute the costs per equivalent unit for the month for the first process.

Transcribed Image Text:

Units to be accounted for: Work in progress inventory, 1 May (all materials, 40% conversion cost added last month) Started into production Total units Quantity schedule 5,000 180,000 185,000