EXERCISE 4–7 Equivalent Units—Weighted-Average Method [ LO2 ]

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 Labor and Pulp Materials Overhead Work in process, June 1 ............................. 20,000 90% 80%

Work in process, June 30 ........................... 30,000 60% 40%

Started into production during June ............ 190,000 Required:

1. Compute the number of tons of pulp completed and transferred out during June.

2. Compute the equivalent units of production for materials and for labor and overhead for June.