Homework SourseAlaskan Fisheries Inc processes salmon for various distribut
Alaskan Fisheries, Inc., processes salmon for various distributors. Two departments are involved— Cleaning and Packing. Data relating to pounds of salmon processed in the Cleaning Department during July are presented below: Percent Completed Pounds of Salmon Materials Labor and Overhead Work in process inventory, July 1 20,000 100% 30% Work in process inventory, July 31 25,000 100% 60% A total of 380,000 pounds of salmon were started into processing during July. All materials are added at the beginning of processing in the Cleaning Department. Required: Compute the equivalent units for July for both materials and labor and overhead assuming that the company uses the weighted-average method of accounting for units. ReferenceseBook & Resources WorkshhetDifficulty: 1 EasyLearning
Solution
Weighted-Average Method:
| Materials | Labor and Overhead | |
| Pounds transferred to the Packing Department during July | 375,000 | 375,000 |
| Work in process, July 31: | ||
| Materials: 25,000 pounds × 100% complete | 25,000 | |
| Labor and overhead: 25,000 pounds × 60% complete | 15,000 | |
| Equivalent units of production | 400,000 | 390,000 |
