The Ohio Company manufactures a product that goes through three processing depar

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:


Units Materials Conversion
Work in process, 1June 50,000 80%(completed) 60%(completed)
Work in process, 30June 45,000 75%(completed) 65%(completed)



The department started 375,000 units into production during the month and transferred 380,000 completed units to the next department.
Compute the equivalent units of production for the first deparment for June, assuming that the company uses the weighted-average method of accounting for units and costs.

Equivalent units for materials=?
Equivalent units for conversion=?

Explanation / Answer

In equivalent units: Materials Conversion Beginning 50k x 80% = 40k 50k x 60% = 30k Produced 413.75k - 40k = 373.75k 409.25k - 30k = 379.25k Total units to account for 413.75k 409.25k Completed and transferred out 380k 380k Ending 45k x 75% = 33.75k 45k x 65% = 29.25k Total units accounted for 413.75k 409.25k Equivalent units for materials= 413,750 Equivalent units for conversion= 409,250

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