Lindex Company uses a process costing system. The following data are available for one depart- ment for October: Percent Completed Units Materials Conversion Work in process, October 1 . . . . .

Lindex Company uses a process costing system. The following data are available for one depart-

ment for October:

Percent Completed

Units Materials Conversion

Work in process, October 1 . . . . . . . . . . . . . . . . 50,000 90% 60%

Work in process, October 31 . . . . . . . . . . . . . . . 30,000 70% 50%

The department started 390,000 units into production during the month and transferred

410,000 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.

Kalox, Inc., manufactures an antacid product that passes through two departments. Data for May

for the first department follow: Materials Conversion

Equivalent units of production in ending work in process . . . . . . . . . . 300 100

Cost per equivalent unit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $31.56 $9.32

Gallons Materials Labor Overhead

Work in process, May 1 . . . . . . 80,000 $68,600 $30,000 $48,000

Gallons started in process . . . . 760,000

Gallons transferred out . . . . . . . 790,000

Work in process, May 31 . . . . . 50,000

Cost added during May . . . . . . $907,200 $370,000 $592,000

The beginning work in process inventory was 80% complete with respect to materials and

75% complete with respect to labor and overhead. The ending work in process inventory was 60%

complete with respect to materials and 20% 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 May’s activity for the first department.

2. Determine the costs per equivalent unit for May.

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