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Nuetrik [128]
3 years ago
10

Clonex Labs, Inc., uses the weighted-average method in its process costing system. The following data are available for one depa

rtment 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.
Business
1 answer:
Zielflug [23.3K]3 years ago
4 0

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

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