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EXERCSE 4-7 Equivalent Units – Weighted Average Method
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%
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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