Question

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	48,000	85	%	60	%
Work in process, October 31	28,000	67	%	49	%

The department started 389,000 units into production during the month and transferred 409,000 completed units to the next department.

Required:

Compute the equivalent units of production for October.

QUESTION 1) materials:

QUESTION 2) Conversion:

Answer 1

		Units
Reconciliation of Units
A	Opening WIP	48,000
B	Introduced	389,000
C=A+B	TOTAL	437,000
D	Transferred	409,000
E=C-D	Closing WIP	28,000

Statement of Equivalent Units
		Material		Conversion Cost
	Units	Complete %	Equivalent units	Complete %	Equivalent units
Transferred	409,000	100%	409,000	100%	409,000
Closing WIP	28,000	67%	18,760	49%	13,720
Total	437,000	Total	427,760	Total	422,720

Equivalent units

For material: 427,760 Units

For Conversion: 422,720 units

Note

When weighted average method is used percentage of Beginning inventory completed is not taken for any calculations.