The Ohio Company manufactures a product that goes through three processing depar
ID: 2389250 • Letter: T
Question
The Ohio Company manufactures a product that goes through three processing departments. Information relating to activity in the first department during June is given below:Percent Completed
Units Materials Conversion
Work in process, June 1 45,000 75% 65%
Work in Process, June 30 38,000 60% 55%
The department started 315,000 units into production during the month and transferred 322,000 completed units to the next department.
Compute the equivalent units of production for the first department for June, assuming that that the company uses the weighted-average method of accounting for units and costs.
Equivalent units of production
Materials:
Conversion:
Explanation / Answer
Note: We always assume that units transferred out of a department are 100%complete with respect to the processing done in that department. Equivalent units of production:(Weighted - Average Method) Details Materials Conversion Units transfered to next department 322,000 322,000 Ending Work in Process Materials :38,000 * 60% 22,800 Conversion 38,000 * 55% 20,900 _______________ ________________ Equivalent units of production 344,800 342,900 Percent Complete Details Units Materials Conversion Beginning Work in process,june 1 45,000 75% 65% Units started into production during the month 315,000 Units completed during the month and transferred to the next department 322,000 100% 100% Ending Work in Process june 30 38,000 60% 55%Related Questions
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