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MediSecure Labs uses the weighted-average method in its process costing system. The following data are available for one department for September. Percent Completed Units Materials Conversion Work in process, Sept 1 30,000 65% 30% Work in process, Sept 31 15,000 60% 20% 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 September.

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Answer and Explanation:

The calculation of the equivalent units of production for September month is shown below:

Particulars                           Material                      Conversion

Units transferred out         190,000                        190,000

Add:  

Ending work in process    9,000                               3,000

                                   (15,000 × 0.60)               (15,000 × 0.20)

Equivalent unit of production 199,000               193,000

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