Question

Clonex Labs, Inc., uses the weighted-average method in its process costing system. The following data are available for one department for October Work in process, October 1 Work in process, October 31 Units 52,000 36,000 Percent Completed Materials Conversion 95% 55% 72% 54% The department started 389,000 units into production during the month and transferred 405,000 completed units to the next department Required: Compute the equivalent units of production for October Materials Conversion Equivalent units of production

Answer 1

Statement of Equivalent Units of Production

For the Month of October

Using Weighted Average Method

Particulars	Units	% Materials	EUP Materials	% Conversion	EUP Conversion
Units Transferred Out	405,000	100%	405,000	100%	405,000
Ending Work in Process Oct 31	36,000	72%	25,920	54%	19,440
Equivalent Units of Production			430,920		424,440

Notes

EUP stands for Equivalent Units of Production.

EUP Materials = Units * % Materials

EUP Conversion = Units * % Conversion

Using Weighted Average Method Units transferred from Opening Work in Process is not relevant as in FIFO Method as it takes all the unit transferred during the month are 100% completed in the same month.