Exercse 4-7_ gulf fisheries_ equivalent units


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.
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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