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 80,100 86 % 24 % Work in process, June 30 50,100 50 % 12 % Started into production during June 300,900 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

	Beginning work in process			80,100	Completed & transferred			330,900
	started during the year			300,900	ending work in process			50,100
	units to be accounted			381,000	Units accounte for			381,000
1)	Number of tons of pulp completed and transferred out
	during June		330,900
2)	Equivalent units of production
				units	%Mate	Materials	%	CC
	completed & transferred			330,900	100%	330,900	100%	330,900
	ending work in process			50,100	50%	25050	12%	6012
	Equivalent units of production					355,950		336,912
	material		355,950
	labor & overhead		336,912