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 Labor and Tons of Pulp Materials Overhead 20,000 90 % 80% 30,000 60% 40% 190,000 Work in process, June 1 Work in process, June 30 Started into production during June 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. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the number of tons of pulp completed and transferred out during June. Tons completed and transferred out < Required 1 Required 2 >

Answer 1

Answer

• Requirement 1

Tons completed & transferred out = 20000 beginning WIP + 190000 started into production – 30000 ending WIP
= 20000 + 190000 – 30000
= 180,000 tons of pulp

• Requirement 2

--Working

EUP - Weighted Average Method	Units	% Material	EUP Materials	% Conversion	EUP - Conversion
Units TRANSFERRED	180,000	100%	180,000	100%	180,000
Units of ENDING WIP	30,000	60%	18,000	40%	12,000
Equivalent Units of Production			198,000		192,000

--Equivakent units of production:
>materials = 198,000
>Labor & overhead = 192,000