Question

A-
Clonex Labs, Inc., uses a process costing system. The following data are available for one department for October: Percent Completed Materials Conversion 90% 55% 66% 49% Units 49,000 37,000 Work in process, October 1 Work in process, October 31 The department started 400,000 units into production during the month and transferred 412,000 completed units to the next department. Required: Compute the equivalent units of production for October, assuming that the company uses the weighted- average method of accounting for units and costs. Materials Conversion Equivalent units of production

B-

Answer 1

A
	Materials	Conversion
Units completed	412000	412000
Work in Process, October 31:
37000 X 66%	24420
37000 X 49%		18130
Equivalent units of production	436420	430130
B
1
	Materials	Labor	Overhead
Work in Process, May 1	32000	52806	257175
Cost added during May	194125	35204	171450
Total costs	226125	88010	428625
Divide by Equivalent units of production	2700	2600	2500
Cost per Equivalent unit	83.75	33.85	171.45
2
Total Cost per Equivalent unit	289.05	=83.75+33.85+171.45