Question

Highlands Company uses the weighted-average method in its process costing system. It processes wood pulp for various manufacturers of paper products. Data relating to tons of pulp processed during June are provided below:  

		Percent Completed
	Tons of Pulp	Materials		Labor and Overhead
Work in process, June 1	81,100	86	%	20	%
Work in process, June 30	51,900	42	%	12	%
Started into production during June	301,200

Required:  

1. Compute the number of tons of pulp completed and transferred out during June.

2. Compute the equivalent units of production for materials and for labor and overhead for June.

Answer 1

Requirement 1:

Work in process, June 1	81,100
Started into production during June	301,200
Total units accounted for	382,300
Work in process, June 30	-51,900
Number of tons of pulp completed and transferred out	330,400

Requirement 2:

Equivalent units
	Materials	Labor and Overhead
Units completed and transferred out	330,400	330,400
Work in process, June 30:
[51,900 x 42%]	21,798
[51,900 x 12%]		6,228
Total equivalent units	352,198	336,628