Question

Highlands Company uses the FIFO 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 21,300 83% 81% 28,800 69% 499 191,600 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 t Required 1 Required 2 Compute the number of tons of pulp completed and transfer Tons completed and transferred out during the month < Required Required 2 >

Answer 1

Highlands company
FIFO Method:
Answer 1 - ( 21300 + 191600 ) - 28800 =
184100 ( answer )
		Equivalent Units
		DM		Conversion costs
	Whole units	%	Units	%	Units
Opening WIP	21300
Started	191600
Total Units to account for	212900
Opening WIP	21300	17	3621	19	4047
Completed and tfd.( 184100 - 21300 )	162800	100	162800	100	162800
Closing WIP	28800	69	19872	49	14112
Total Units to account for ( EUP)	212900		186293		180959	Answer 2