Washington State Fisheries, Inc., processes salmon for various distributors. Two departments, processing and packaging, are involved. Data relating to tons of salmon sent to the processing department during May follow: Percent Completed Tons of Salmon Direct Materials Conversion
Work-in-process inventory, May 1 1,960 80 % 70 %
Work-in-Process inventory, May 31 3,340 50 % 30 %
Started processing during May 8,150
Required:
1. Calculate the number of tons completed and transferred out during the month.
2. Calculate the number of equivalent units for both direct materials and conversion for the month of May, assuming that the company uses the weighted-average method.
3. How would your answer in requirement 2 change if the percentage of completion in ending inventory were as follows:
direct materials 30%, conversion 40%

1. Calculate the number of tons completed and transferred out during the month.

tons completed and transferred out = 1,960 + 8,150 - 3,340 = 6,770

2. Calculate the number of equivalent units for both direct materials and conversion for the month of May, assuming that the company uses the weighted-average method.

EU for materials = 6,770 + 1,670 = 8,440 EU

EU for conversion costs = 6,770 + 1,002 = 7,772 EU

3. How would your answer in requirement 2 change if the percentage of completion in ending inventory were as follows:

direct materials 30%, conversion 40%

EU for materials = 6,770 + 1,002 = 7,772 EU

EU for conversion costs = 6,770 + 1,336 = 8,106 EU

Explanation:

beginning WIP 1,960

materials 80% (20% remaining 392 EU)

conversion 70% (30% remaining 588 EU)

ending WIP 3,340  

materials 50% (1,670 EU)

conversion 30% (1,002 EU)

tons started during May 8,150

alternative ending WIP 3,340

materials 30% (1,002 EU)

conversion 40% (1,336 EU)

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