Problem
Alaskan Fisheries, Inc., processes salmon for various distributors. Two departments are involved- Cleaning and Packing. Data relating to pounds of salmon processed in the Cleaning Department during July are presented below:
|
|
Percent Completed
|
|
Pounds of
Salmon
|
Materials
|
Labor and
Overhead
|
|
Work in process inventory, July 1
|
26,000
|
100%
|
59%
|
|
Work in process inventory, July 31
|
19,000
|
100%
|
80%
|
A total of 540,000 pounds of salmon were started into processing during July. All materials are added at the beginning of processing in the Cleaning Department.
Required:
Compute the equivalent units for July for both materials and labor and overhead assuming that the company uses the weighted-average method of accounting for units.