Question

Washington State Fisheries, Inc., processes salmon for various distributors. Two departments, processing and packaging, are involved. Data relating to tons of salmon sent to the processing department during May follow:

			Percent Completed
	Tons of Salmon		Direct Materials			Conversion
Work-in-process inventory, May 1	1,880		80	%		70	%
Work-in-Process inventory, May 31	3,860		50	%		30	%
Started processing during May	11,300

Required:

1. Calculate the number of tons completed and transferred out during the month.

2. Calculate the number of equivalent units for both direct materials and conversion for the month of May, assuming that the company uses the weighted-average method.

3. How would your answer in requirement 2 change if the percentage of completion in ending inventory were as follows: direct materials 30%, conversion 40%?

Answer 1

Required 1 :	.
Work-in-process inventory, May 1	1880
(+) Started processing during May	11300
(-) Work-in-process inventory, May 31	3860
Units completed and transferred out	9320

Required 2 :		.
	Direct materials	Conversion
Units completed and transferred out	9320	9320
(+) Ending equivalent work in process [ Work in process inventory, May 31 * % Completion ]	3860*50% = 1930	3860*30% = 1158
Equivalent units	11250	10478

Required 3 :		.
	Direct materials	Conversion
Units completed and transferred out	9320	9320
(+) Ending equivalent work in process [ Work in process inventory, May 31 * % Completion ]	3860*30% = 1158	3860*40% = 1544
Equivalent units	10478	10864