The Indiana Company manufactures a product that goes through three processing departments. Information relating to activity in the first department during June is given below.
Percentage Completed
Units
Materials
Conversion
70,000
65%
45%
60,000
75%
65%
The department started 290,000 units into production during the month and transferred 300,000 completed units to the next department.
Required: Compute the equivalent units of production for the first department for June, assuming that the company uses the weighted-average method of accounting for units and costs
Solution
Statement of equivalent units:
Equivalent units for materials = 300,000×100%+60,000×75% = 345,000
Equivalent units for conversion = 300,000×100%+60,000×65% = 339,000
.
The Indiana Company manufactures a product that goes through three pro.docx
1. The Indiana Company manufactures a product that goes through three processing departments.
Information relating to activity in the first department during June is given below.
Percentage Completed
Units
Materials
Conversion
70,000
65%
45%
60,000
75%
65%
The department started 290,000 units into production during the month and transferred 300,000
completed units to the next department.
Required: Compute the equivalent units of production for the first department for June, assuming
that the company uses the weighted-average method of accounting for units and costs
Percentage
Completed
Units Materials Conversion
Work in process, June 1 70,000 65% 45%
Work in process, Jun 30 60,000 75% 65%
2. Solution
Statement of equivalent units:
Equivalent units for materials = 300,000×100%+60,000×75% = 345,000
Equivalent units for conversion = 300,000×100%+60,000×65% = 339,000
