Hielta Oy, a Finnish company, processes wood pulp for various manufacturers of paper products. Data relating to tons of pulp processed during June are provided below:
tons of labor and
pulp materials overhead
Work in process, June 1 20,000 90% 80%
Work in process, June 30 30,000 60% 40%
Started into production during June 190,000
1. Compute the number of tons of pulp completed and transferred out during June.
2. Compute the equivalent units of production for materials and for labor and overhead for June.
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1. Total units would be units in beginning WIP + units started = 20,000+190,000=210,000
Of this 210,000 ...
The solution explains how to calculate the Equivalent Units using Weighted-Average Method