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1. value: 30.00 points Clonex Labs, Inc., uses a process costing system. The fol

ID: 2427659 • Letter: 1

Question


1.
value:
30.00 points

Clonex Labs, Inc., uses a process costing system. The following data are available for one department
for October:

Percent Completed

Units Materials Conversion
  Work in process, October 1 48,000 95% 60%
  Work in process, October 31 30,000 69% 50%


The department started 396,000 units into production during the month and transferred 414,000 completed units to the next department.


Required:

Compute the equivalent units of production for October, assuming that the company uses the weighted-average method of accounting for units and costs.

Explanation / Answer

Answer

Equivalent units of production for October - Material = 434700

Equivalent units of production for October - Conversion = 429000

Working

Equivalent Unit Unit Material Conversion Cost % Completed Unit % Completed Unit Unit Completed & transferred 414000 100% 414000 100% 414000 Closing WIP 30000 69% 20700 50% 15000 Total Units 444000 Equivalent Unit 434700 429000