Question

Lindex Company uses a process costing system. The following data are available for one department for October:

		Percent Completed
	Units	Materials	Conversion
Work in process, October 1	51,000	90%	60%
Work in process, October 31	29,000	69%	45%

The department started 392,000 units into production during the month and transferred 414,000 completed units to the next department.

Required:

Compute the equivalent units of production for October, assuming that the company uses the weighted-average method of accounting for units and costs.

Answer 1

UNITS TO ACCOUNT FOR:
Beginning Work in Process units				51,000
Add: Units Started in Process				392,000
Total Units to account for:				443,000
UNITS TO BE ACCOUNTED FOR:
Units started and completed				414,000
Ending Work in Process				29,000
Total Units to be accounted for:				443,000
Equivalent Units:
			Material Cost		Conversion
			% Completion	Units	% Completion	Units
Units started and completed			100%	414,000	100%	414,000
Ending Work in Process			69%	20,010	45%	13,050
Total Equivalent units				434,010		427,050