Posted: October 27th, 2021

Exercse 4-7_ gulf fisheries_ equivalent units

EXERCSE 4-7 Equivalent Units – Weighted Average Method

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Gulf Fisheries, Inc. Processes tuna for various distributors. Two departments are involved – Cleaning and Packing. Data relating to kilograms of tuna processed in the cleaning department during May are given below:

                                                                                                Kilograms of Tuna            Percentage completed

Work in process, May 1                                                 15,000                                   55%

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Work in process, May 31                                               10,000                                   90%

A total of 240,000 kilograms of tuna were started into processing during May. All materials are added at the beginning of processing in the Cleaning Department.

Required:

 

Compute the equivalent units for May for the Cleaning Department, assuming that the company uses the weighted – average method of accounting for units. 

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