Question

Clonex Labs, Inc., uses the weighted average method in its process costing system. The following data are available for one department for October: Percent Completed Materials Conversion 90% 60% 69% 49% Units 53,000 36,000 Work in process, October 1 Work in process, October 31 The department started 390,000 units into production during the month and transferred 407,000 completed units to the next department Required: Compute the equivalent units of production for October. Materials Conversion Equivalent units of production

Answer 1

Correct Answer:

	Material	Conversion
Equivalents units of production	431,840	424,640

Working:

Reconciliation of Units
A	Beginning WIP	53,000
B	Introduced	390,000
C=A+B	TOTAL	443,000
D	Transferred out	407,000
E=C-D	Ending WIP	36,000

Statement of Equivalent Units(Weighted average)
			Material	Conversion
	Units			Complete %	Equivalent units	Complete %	Equivalent units
Transferred out	407,000			100%	407,000	100%	407,000
Ending WIP	36,000			69%	24,840	49%	17,640
Total	443,000			Total	431,840	Total	424,640

End of Answer.

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