The Alabama Company manufactures a product that goes through three processing departments. Information relating to activity in the first department during June is given below.
|
|
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Percentage Completed
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|
|
Units
|
Materials
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Conversion
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|
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Work in process, June 1
|
75,000
|
65%
|
45%
|
|
|
Work in process, Jun 30
|
72,500
|
75%
|
70%
|
|
The department started 237,500 units into production during the month and transferred 240,000 completed units to the next department.
Required: Compute the equivalent units of production for the first department for June, assuming that the company uses the weighted-average method of accounting for units and costs.