Question

Clonex Labs, Inc., 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 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, 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				30,000
Add: Units Started in Process				175,000
Total Units to account for:				205,000
UNITS TO BE ACCOUNTED FOR:
Units started and completed				190,000
Ending Work in Process				15,000
Total Units to be accounted for:				205,000
Equivalent Units:
			Material Cost		Conversion
			% Completion	Units	% Completion	Units
Units completed			100%	190,000	100%	190,000
Ending Work in Process			80%	12,000	40%	6,000
Total Equivalent units				202,000		196,000