Calculating the equivalent units of production


The Illinois Company manufactures a product that goes through three processing departments. Information relating to activity in the first department during June is given below:

Percent completed
Units Materials Conversion
Work in process, June 1 150,000 75% 55%
Work in process, Jun 30 145,000 85% 75%

The department started 475,000 units into production during the month and transferred 480,000 completed units to the next department.

REQUIRED: Compute the equivalent units of production for the first department for June, assuming that the company uses the weighted-average method of accounting for units and costs.

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Accounting Basics: Calculating the equivalent units of production
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