Lindex Company uses a process costing system. The following data are available f

Question

Lindex Company uses a process costing system. The following data are available for one department for October:

Percent Completed

The department started 386,000 units into production during the month and transferred 405,000 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.

Lindex Company uses a process costing system. The following data are available for one department for October:

Explanation / Answer

EQUIVALENT UNITS USING THE WEIGHTED AVERAGE METHOD:-

MATERIALS = 48000*5% + [405000-48000]*100% + 29000*66%

= 378540 UNITS

CONVERSION COST = 48000*40% + [405000-48000]*100% + 29000*50%

= 390700 UNITS

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