Question

Alaskan Fisheries, Inc. processes salmon for various distributors. Two departments are involved department 1 and department 2. Data relating to pounds of salmon processed in department 1 during July are presented below: Pounds of Salmon 35,000 455,000 40,000 Percentage Completed* 40% Work in process. July 1 Started into processing during July Work in process, July 31 *Labour and overhead only. 70% All materials are added at the beginning of processing in department 1. Labour and overhead (conversion) costs are incurred uniformly throughout processing. Required: Prepare quantity schedules and a computation of equivalent units for July for department 1 according to the weighted average method of accounting for units. Quantity Schedule Pounds to be accounted for: Work in process, July 1 Started into production during July Total pounds 35,000 455,000 490,000 Equivalent Units (EU) Materials Conversion Units Pounds accounted for as follows: Transferred to department 2 during July Work in process, July 31 Total pounds and equivalent units of production

Answer 1

Solution:

Alaskan Fisheries Inc.
Computation of Equivalent unit of Production
Particulars	Physical Units	Material	Conversion
Units to account for:
Beginning WIP	35000
Started into Production	455000
Total units to account for	490000
Units accounted for:
Unit completed & Transferred out	450000	450000	450000
Units in ending inventory:	40000
Material (100%)		40000
Conversion (70%)			28000
Equivalent units of production	490000	490000	478000