EXERCISE 4–9 Equivalent Units and Cost per Equivalent Unit—Weighted-Average Method [ LO2 , LO3 , LO4 ]

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 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 cost 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 Required:
1. 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.
2. Compute the costs per equivalent unit for May for the first process.
3. Determine the total cost of ending work in process inventory and the total cost of units transferred to the next process in May.