Chapter 4, Problem 2E

EXERCISE 4-2 Computation of Equivalent Units—Weighted-Average Method [L04-2]

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 ….	30,000	65%	30%
Work in process, October 31 ….	15,000	80%	40%

The department started 175,000 units into production during the month and transferred 190,000 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.