Question

Clonex Labs, Inc., uses a process costing system. The following data are available for one department for October:

Percent Completed
Units Materials Conversion
Work in process, October 1 54,000 95% 60%
Work in process, October 31 30,000 75% 46%
The department started 385,000 units into production during the month and transferred 409,000 completed units to the next department.
Required:
1. Compute the equivalent units of production for October, assuming that the company uses the weighted-average method of accounting for units and costs.

Answer 1

Equivalent units of Production = 46500 & 37800

Step-by-step explanation:

At the start of October, Clonex Labs inc, started with 385000 units into production and at the end of the month it had completed 409000 units this means the difference between 409000 and 385000 is the number of units transferred to the next department (i.e 24000), now that we have computed this, we find ending work-in-process as follows:

Clonex Labs, Inc. Materials Conversion

Units transferred to the next department: 24000 24,000

Ending work in process :

Materials : 30000x75% 22500

Conversion : 30000x46% 13800

------------- -------------

Equivalent units of Production = 46500 37800

========= ========