Equivalent Units; Weighted-Average Method Eastern Oregon Lumber Company grows, harvests, and processes timber for use as building lumber. The following data pertain to the company’s sawmill:
Work-in-process inventory, January 1 (materials: 60 percent; conversion: 40 percent) | 30,000 units |
Work-in-process inventory, December 31(materials: 70 percent; conversion: 60 percent) | 15,000 units |
During the year the company started 150,000 units in production.
Required Prepare a physical flow schedule and compute the number of equivalent units of both direct materials and conversion for the year, using the weighted-average method.
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