Question

Washington State Fisheries, Inc., processes salmon for various distributors. Two departments, processing and packaging, are involved. Data relating to tons of salmon sent to the processing department during May follow:

			Percent Completed
	Tons of Salmon		Direct Materials			Conversion
Work-in-process inventory, May 1	1,140		80	%		70	%
Work-in-Process inventory, May 31	2,960		50	%		30	%
Started processing during May	7,300

Required:

1. Calculate the number of tons completed and transferred out during the month.

2. Calculate the number of equivalent units for both direct materials and conversion for the month of May, assuming that the company uses the weighted-average method.

3. How would your answer in requirement 2 change if the percentage of completion in ending inventory were as follows: direct materials 30%, conversion 40%?

• Required 1

Calculate the number of tons completed and transferred out during the month.

	Units completed and transferred out

• Required 2

Calculate the number of equivalent units for both direct materials and conversion for the month of May, assuming that the company uses the weighted-average method.

	Equivalent Units Direct materials Conversion

• Required 3

How would your answer in requirement 2 change if the percentage of completion in ending inventory were as follows: direct materials 30%, conversion 40%?

	Equivalent Units Direct materials Conversion

Answer 1

Required 1 :
Work-in-process inventory, May 1	1140
(+) Started processing during May	7300
(-) Work-in-process inventory, May 31	2960
Units completed and transferred out	5480

Required 2 :
	Direct materials	Conversion
Units completed and transferred out	5480	5480
(+) Ending equivalent work in process [ Work in process inventory, May 31 * % Completion ]	1480	888
Equivalent units	6960	6368

Required 3 :
	Direct materials	Conversion
Units completed and transferred out	5480	5480
(+) Ending equivalent work in process [ Work in process inventory, May 31 * % Completion ]	888	1184
Equivalent units	6368	6664