Alaskan Fisheries, Inc., processes salmon for various distributors and it uses the weighted-average method in its process costing system. The company has two processing departments—Cleaning and Packing. Data relating to pounds of salmon processed in the Cleaning Department during July are presented below: Percent Completed Pounds of SalmonMaterialsLabor and OverheadWork in process inventory, July 127,000100%53%Work in process inventory, July 3122,000100%90% A total of 490,000 pounds of salmon were started into processing during July. All materials are added at the beginning of processing in the Cleaning Department. Required:Compute the Cleaning Department's equivalent units of production for materials and for labor and overhead in the month of July.

Equivalent units can be calculated by allocating overheads as per their percentage completion.

Answered: Alaskan Fisheries, Inc., processes…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Alaskan Fisheries, Inc., processes salmon for various distributors and it uses the weighted-average method in its process costing system. The company has two processing departments—Cleaning and Packing. Data relating to pounds of salmon processed in the Cleaning Department during July are presented below:

	Percent Completed
	Pounds of Salmon	Materials	Labor and Overhead
Work in process inventory, July 1	27,000	100	%	53	%
Work in process inventory, July 31	22,000	100	%	90	%

A total of 490,000 pounds of salmon were started into processing during July. All materials are added at the beginning of processing in the Cleaning Department.

Required:

Compute the Cleaning Department's equivalent units of production for materials and for labor and overhead in the month of July.

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