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Hielta Oy, a Finnish company, processes wood pulp for various manufacturers of paper products. Data relating...

Hielta Oy, a Finnish company, 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 81,700     82% 25%
  Work in process, June 30 51,900     46% 17%
  Started into production during June 300,600    

  

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.

Solutions

Expert Solution

1) Calculation of number of tons of pulp completed & transferred
particulars amount
Work in process june 1 $                   81,700.00
Add: Started in production june $               3,00,600.00
less: Work in process june 30 $                   51,900.00
tons completed & transferred $               3,30,400.00
2) calculation of equivalent unit of production
Particulars Material Labour & OH
Completed & transferred $       3,30,400.00 $               3,30,400.00
WIP ending $          23,874.00 $                     8,823.00
equivalent unit of production $       3,54,274.00 $               3,39,223.00
Working
WIP - ending 51900*46% 51900*17%

ekkarill92 answered 1 year ago
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