Question

Clonex Labs, Inc., uses the weighted-average method in its process costing system. The following data are available for one department for October: Percent Completed Units Materials Conversion Work in process, October 1 45,000 90 % 65 % Work in process, October 31 25,000 71 % 50 % The department started 386,000 units into production during the month and transferred 406,000 completed units to the next department. Required: Compute the equivalent units of production for October.

Answer 1

The equivalent units of production for October are :

Raw Materials = 423,750

Conversion Costs = 418,500

Step-by-step explanation:

Calculation of Equivalent Units of Production

1. Raw Materials

Ending Work In Process Inventory (25,000 × 71%) 17,750

Completed and Transferred (406,000 × 100%) 406,000

Equivalent Units of Production for Materials 423,750

2. Conversion Costs

Ending Work In Process Inventory (25,000 × 50%) 12,500

Completed and Transferred (406,000 × 100%) 406,000

Equivalent Units of Production for Materials 418,500