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Exercise 5-6 Equivalent Units of Production-Weighted-Average Method [LO5-2] Highlands Company uses the weighted-average method in its process costing system. It processes wood pulp for various manufacturers
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Exercise 5-6 Equivalent Units of Production-Weighted-Average Method [LO5-2] 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 Tons of Pulp Materials Labor and Overhead Work in process, June 1 80,600 81 % 25 % Work in process, June 30 51,900 42 % 17 % Started into production during June 301,100 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.

User Biribu
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Answer:

1. Tons of pulp completed and transferred out in June:

= Beginning Work in Process + Started into production in June - Ending WIP

= 80,600 + 301,100 - 51,900

= ‭329,800‬ tons

2. Equivalent units for Materials:

= Units completed and transferred out + Ending Equivalent units

= ‭329,800‬ + (51,900 * 42%)

= ‭351,598‬ tons

Equivalent units for Labor:

= 329,800 + (51,900 * 17%)

= ‭338,623‬ tons

User Motam
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