Question

helppp

Exercise 4-6 Equivalent Units of Production-Weighted Average Method [LO4-2] Highlands Company uses the weighted average 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 20,000 30,000 60 % 40 % 190,000 90% 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 the tabs below. Required 1 Required 2 Compute the number of tons of pulp completed and transferred out during June. Tons completed and transferred out Required 1 Required 2 >

Answer 1

Ans.

1) Compute the number of tons of pulp completed and transferred out during June.

	Tons of Pulp
Work in process, June 1	20,000.00
Started into production during the month	190,000.00
Total tons in process	210,000.00
Less : work in process, June 30	30,000.00
Completed and transferred out during the month	180,000.00

2)Compute the equivalent units of production for materials and for labor and overhead for June.

	Equivalent Units of Production
	Material	Labor & Overhead
Units transferred out during the month	180,000.00	180,000.00
Equivalent units in ending work in process inventory:
Materials: 30,000 tons × 60% complete	18,000.00
Labor and overhead: 30,000 tons × 40% complete		12,000.00
Equivalent units of production	198,000.00	192,000.00