Clonex Labs, Inc., uses a process costing system. The following data are availab
ID: 2422617 • Letter: C
Question
Clonex Labs, Inc., uses a process costing system. The following data are available for one department
for October:
Percent Completed
The department started 405,000 units into production during the month and transferred 413,000 completed units to the next department.
Compute the equivalent units of production for October, assuming that the company uses the weighted-average method of accounting for units and costs.
Clonex Labs, Inc., uses a process costing system. The following data are available for one department
for October:
Explanation / Answer
EQUIVELENT UNITS OF PRODUCTION FOR MATERIAL
EQUIVELENT UNIT OF 100% COMPLETE & TRANSFERED = 413000
ADD EQUIVELENT CLOSING WORK IN PROCESS (40000 * 73%) = 29200
TOTAL EQUIVELENT UNIT OF PRODUCTION = 442200
EQUIVELENT UNITS OF PRODUCTION FOR CONVERSION
EQUIVELENT UNIT OF 100% COMPLETE & TRANSFERED = 413000
ADD EQUIVELENT CLOSING WORK IN PROCESS (40000 * 54%) = 21600
TOTAL EQUIVELENT UNIT OF PRODUCTION = 434600
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