Question

Clonex Labs, Inc., uses the weighted-average method in its process costing system. The following data are available for one department for October: Percent Completed Units Materials Conversion Work in process, October 1 30,000 65 % 30 % Work in process, October 31 15,000 80 % 40 % The department started 175,000 units into production during the month and transferred 190,000 completed units to the next department. Required: Compute the equivalent units of production for October.

Answer 1

Answer:

Equivalent units of production for Materials = 202,000 units

Equivalent units of production for Conversion =  196,00 units

Explanation:

Given the following:

                                                                        Percent Completed

                                                    Units          Materials       Conversion

Work in process, October 1      30,000             65%                 30%

Work in process, October 31     15,000             80%                 40%

Since,

Equivalent units of Production = Units completed + (Ending Work-in-process * Percentage of Completion)

We therefore have:

Equivalent units of production for Materials = 190,000 + (15,000 * 80%) = 202,000 units

Equivalent units of production for Conversion = 190,000 + (15,000 * 40%) =  196,00 units