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The Indiana Company manufactures a product that goes through three processing departments. Information relating to activity in the first department during June is given below.
Percentage completed Units Materials ConversionWork in process, June 1 70,000 65% 45%Work in process, Jun 30 60,000 75% 65%
The department started 290,000 units into production during the month and transferred 300,000 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.
The standard costs and actual costs for direct labor for the manufacture of 2,500 actual units of product are as follows:
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