Sagar Kharel
Assignment : 4
4-6: Equivalent Units—Weighted-Average Method Hielta Oy, a Finnish company, processes wood pulp for various manufacturers of paper products. Data relating to tons of pulp processed during June are provided below: Percent Completed Tons of pulp Materials Labor and overhead Work in process, june1 20,000 90% 80% Work in process, june 30 30,000 60% 40% Started into production during june 190,000 1. Compute the number of tons of pulp completed and transferred out during June. Weighted average method: Tons of pulp WIP june 1 20,000
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Data for a recent month for the first department follow:
units material labor overhead WIP beginning 5,000 $4,320 $1,040 $1,790 units started in process 45,000 unit transferred out 42,000 WIP ending 8,000 cost added during the month $52,800 $21,500 $32,250 The beginning work in process inventory was 80% complete with respect to materials and 60% complete with respect to labor and overhead. The ending work in process inventory was 75% complete with respect to materials and 50% complete with respect to labor and overhead.
Required:
Assume that the company uses the weighted-average method of accounting for units and costs.
1. Compute the equivalent units for the month for the first department.
Material Labor Overhead Units transferred to the next dept. 42,000 42,000 42,000 WIP Ending: Material: 8,000 *75% complete 6,000 Labor and OH: 8,000* 50% complete 4,000 4,000 Equivalent unit of production 48,000 46,000