A company uses process costing system, its weaving Department completed and tran

Question

A company uses process costing system, its weaving Department completed and transformed out 120,000 uses during the current period. The ending inventory in the Weaving Department consists of 40.000 units and 20% complete with respect to direct and 60 % complete with respect to the conversion costing. Determine the equivalent units of production or the Weaving Department for direct and conversion cost assuming the average method. 120 000. 120,000 120, 000, 160,000 128,000, 120,000 128,000, 144,000 128, 000, 184,000

Explanation / Answer

Answer to the Question

No of equivalent units produced in weaving dept Direct material 128,000units and Direct labor 144,000 units

COMPUTATION OF EQUIVALENT NUMBER OF UNITS Particulars No of Units % work done Equivalent Units (a) (b) ©=(a)*(b) No of units Completed and Trf Direct Material (1) 120,000.00 100%          120,000.00 Direct Labor (2) 120,000.00 100%          120,000.00 Closing WIP Direct Material(4)    40,000.00 20%             8,000.00 Direct Labor(5)    40,000.00 60%            24,000.00 TOTAL NO OF EQUIVALENT UNITS Direct Material(6)=(1)+(4)     128,000.00 Direct Labor(7)=(2)+(5)     144,000.00

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