Question

laskan Fisheries, Inc., processes salmon for various distributors and it uses the weighted-average method in its process costing system. The company has two processing departments—Cleaning and Packing. Data relating to pounds of salmon processed in the Cleaning Department during July are presented below:

		Percent Completed
	Pounds of Salmon	Materials		Labor and Overhead
Work in process inventory, July 1	32,000	100	%	56	%
Work in process inventory, July 31	17,000	100	%	70	%

A total of 450,000 pounds of salmon were started into processing during July. All materials are added at the beginning of processing in the Cleaning Department.

Required:

Compute the Cleaning Department's equivalent units of production for materials and for labor and overhead in the month of July.

Answer 1

Solution

	Material	Labor and overhead
Equivalent Units of Production	482,000	476,900

Working

Statement of Equivalent Units(Weighted average)
				Material		Labor and overhead
	Units			Complete %	Equivalent units	Complete %	Equivalent units
Transferred	465,000			100%	465,000.0	100%	465,000
Closing WIP	17,000			100%	17,000.0	70%	11,900
Total	482,000			Total	482,000.0	Total	476,900