In: Accounting
Clonex Labs, Inc., uses the weighted-average method in its process costing system. The following data are available for one department for October:
Percent Completed | |||||
Units | Materials | Conversion | |||
Work in process, October 1 | 54,000 | 95 | % | 60 | % |
Work in process, October 31 | 35,000 | 73 | % | 50 | % |
The department started 392,000 units into production during the month and transferred 411,000 completed units to the next department.
Required:
Compute the equivalent units of production for October.
Answer:
Equivalent units of material = 436,550
Equivalent units of conversion cost = 428,500
Calculations:
Particulars | Units | % Material | EUP- Material | % Conversion | EUP - Conversion |
Started and completed | 411,000 | 100% | 411,000 | 100% | 411,000 |
Ending Inventory | 35,000 | 73% | 25,550 | 50% | 17,500 |
Total | 446,000 | 436,550 | 428,500 |
In case of any doubt, please comment.