Clonex Labs, Inc., uses the weighted-average method in its process costing syste
ID: 2340519 • Letter: C
Question
Clonex Labs, Inc., uses the weighted-average method in its process costing system. The following data are available for one department for October:
The department started 389,000 units into production during the month and transferred 409,000 completed units to the next department.
Required:
Compute the equivalent units of production for October.
QUESTION 1) materials:
QUESTION 2) Conversion:
Percent Completed Units Materials Conversion Work in process, October 1 48,000 85 % 60 % Work in process, October 31 28,000 67 % 49 %
Explanation / Answer
Units
Reconciliation of Units
A
Opening WIP
48,000
B
Introduced
389,000
C=A+B
TOTAL
437,000
D
Transferred
409,000
E=C-D
Closing WIP
28,000
Statement of Equivalent Units
Material
Conversion Cost
Units
Complete %
Equivalent units
Complete %
Equivalent units
Transferred
409,000
100%
409,000
100%
409,000
Closing WIP
28,000
67%
18,760
49%
13,720
Total
437,000
Total
427,760
Total
422,720
Answer
Equivalent units
For material: 427,760 Units
For Conversion: 422,720 units
Note
When weighted average method is used percentage of Beginning inventory completed is not taken for any calculations.
Units
Reconciliation of Units
A
Opening WIP
48,000
B
Introduced
389,000
C=A+B
TOTAL
437,000
D
Transferred
409,000
E=C-D
Closing WIP
28,000
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