Question

East Bay Fisheries Inc. processes king salmon for various distributors. Two departments are involved — processing and packaging. Data relating to tons of king salmon processed in the processing department during June 2019 are provided below:

	Tons of King Salmon	Percent Completed
		Materials	Conversion
Work-in-process inventory — June 1	1,700	91	79
Work-in-process inventory — June 30	3,000	61	42
Started processing during June	8,000

Total equivalent units for materials under the weighted-average method are calculated to be:

Multiple Choice

• 6,982 equivalent units.

• 8,530 equivalent units.

• 7,134 equivalent units.

• 7,626 equivalent units.

• 7,960 equivalent units.

Answer 1

Answer: 8,530 equivalent units

Calculations:

Units transferred out:

Unis Started during June	8,000
Work-in process inventory - June 30	-3,000
Units started and completed	5,000
Work-in process inventory - June 1	1,700
Units transferred out	6,700

Equivalent units:

	Materials
Units transferred out [6,700 x 100%]	6,700
Work-in process inventory-June 30 [3,000 x 61%]	1,830
Total equivalent units	8,530