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	80,500	90	%	29	%
Work in process, June 30	50,400	43	%	16	%
Started into production during June	300,700
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

Solution 1
Tons of Pulp	No of units
Work in process, June 1	80,500
Started into production during June	300,700
Work in process, June 30	(50,400)
Tons completed and transferred out	330,800
From opening WIP	80,500
From Started and completed same month	250,300
Solution 2
		Percent Completed
Tons of Pulp	Materials	Materials	%age	Equivelent Units	Labor and Overhead	%age	Equivelent Units
Work in process, June 1	80,500	10	%	8,050	71	%	57,155
Started and transferred out	250,300	100	%	250,300	100	%	250,300
Work in process, June 30	50,400	43	%	21,672	16	%	8,064
Total				280,022			315,519