EXERCSE 4-7_ Gulf Fisheries_ Equivalent Units

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.