Question - 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:
|
|
Percent Completed
|
|
Tons of
Pulp
|
Materials
|
Labor and overhead
|
|
Work in process, June 1
|
21,400
|
82%
|
88%
|
|
Work in process, June 30
|
28,900
|
61%
|
47%
|
|
Started into production during June
|
190,800
|
|
|
Assume that the company uses the FIFO method in its process costing system.
Requirement 1: Compute the number of tons of pulp completed and transferred out during June.
Requirement 2: Compute the equivalent units of production for materials and for labor and overhead for June.