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	45,000	90	%	60	%
Work in process, October 31	30,000	66	%	55	%

The department started 393,000 units into production during the month and transferred 408,000 completed units to the next department.

Required:

Compute the equivalent units of production for October.

	Materials	Conversion
Equivalent units of production

Answer 1

		Material	Conversion
	Equivalent units of production	4,27,800	4,24,500
	Workings:
	Equivalent Units of production - weighted average method	Units	% Materials	EUP - Materials	% Conversion	EUP - Conversion
		(i)	(ii)	(i) X (ii)	(iii)	(i) X (iii)
	Units completed and transferred out	4,08,000	100%	4,08,000	100%	4,08,000
Add:	Ending work - in - process inventory units	30,000	66%	19,800	55%	16,500
	Total EUP	4,38,000		4,27,800		4,24,500

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