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 | 53,000 | 95 | % | 65 | % |
Work in process, October 31 | 36,000 | 71 | % | 53 | % |
The department started 394,000 units into production during the month and transferred 411,000 completed units to the next department.
What is the Equivalent of production for Materials and Conversion?
Units |
||
Reconciliation of Units |
||
A |
Opening WIP |
53000 |
B |
Introduced |
394,000 |
C=A+B |
TOTAL |
447,000 |
D |
Transferred |
411,000 |
E=C-D |
Closing WIP |
36,000 |
Statement of Equivalent Units |
|||||
Material |
Conversion Cost |
||||
Units |
Complete % |
Equivalent units |
Complete % |
Equivalent units |
|
Transferred |
411,000 |
100% |
411,000 |
100% |
411,000 |
Closing WIP |
36,000 |
71% |
25,560 |
53% |
19,080 |
Total |
447,000 |
Total |
436,560 |
Total |
430,080 |
Equivalent units
For material= 436560 Units
For Conversion = 430080 Units