Highlands Company uses the weighted-average method in its process costing system. It processes wood pulp for various manufacturers of paper products. Data relating to tons of pulp processed during June are provided below: Work in process, June 1 Work in process, June 30 Started into production during June Tons of Pulp 80,900 $1,300 300,600 Percent Completed Materials 84% 46% Labor and Overhead 29% 13% Required: 1. Compute the number of tons of pulp completed and transferred out during June. 2 Compute the equivalent units of production for materials and for labor and overhead for June.
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
![Exercise 5-6 (Algo) Equivalent Units of Production-Weighted-Average Method [LO5-2]
Highlands Company uses the weighted-average method in its process costing system. It processes wood pulp for various
manufacturers of paper products. Data relating to tons of pulp processed during June are provided below:
Work in process, June 1
Work in process, June 30
Started into production during June
Required 1 Required 2
Tons of Pulp
80,900
51,300
300,600
Complete this question by entering your answers in the tabs below.
Equivalent units of production
Percent Completed
Required:
1. Compute the number of tons of pulp completed and transferred out during June.
2 Compute the equivalent units of production for materials and for labor and overhead for June.
Materials
Materials
84%
46%
< Required 1
Labor and
Compute the equivalent units of production for materials and for labor and overhead for June,
Labor and
Overhead
Overhead
29%
13%
Required 2 >](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F14471910-6b4c-414d-89e3-633d0725a541%2F9b0be0e5-2821-4a7c-b67e-60f064a455a4%2Fdwugbmc_processed.png&w=3840&q=75)
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