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	81,800	81	%	28	%
Work in process, June 30	51,900	46	%	14	%
Started into production during June	300,500

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

No. of toms completed and transferred
= 81800 + 300500 – 51900
= 330,400 Answer

Units Reconciliation
Units to account for:
Beginning WIP	81,800
Units started this period	300,500
Total Units to account for	382,300
Total Units accounted for:
Completed & Transferred out	330,400 [Answer]
Ending WIP	51,900
Total Units accounted for	382,300

• Requirement 2

EUP - Weighted Average Method	Units	% Material	EUP Materials	% Labor & Overhead	EUP - Labor & Overhead
Units TRANSFERRED	330,400	100%	330,400	100%	330,400
Units of ENDING WIP	51,900	46%	23,874	14%	7,266
Equivalent Units of Production			354,274		337,666