United Clinical Laboratories is a medical laboratory located in Minnesota. United Clinical Laboratories uses the weighted-average method in its process costing system. For the month of August, the following data are available for one department: Percent Completed Units Materials Conversion Work in process, August 1 45,000 90 % 55 % Work in process, August 31 26,000 75 % 49 % The department started 390,000 units into production during the month and transferred 409,000 completed units to the next department. Required: Compute the equivalent units of production for August.

United Clinical Laboratories

                                                              Materials            Conversion

Equivalent units of production             428,500                 421,740

Explanation:

a) Data and Calculations:

Percent Completed                Units      Materials     Conversion

Work in process, August 1   45,000          90 %            55 %

Work in process, August 31 26,000          75 %            49 %

Equivalent Units of Production for the month of August:

                                                 Units        Materials            Conversion

Work in process, August 1     45,000

Units started in August       390,000

Total units available            435,000

Units transferred out          409,000    409,000 (100%)   409,000 (100%)

Work in process, August 31 26,000        19,500 (75%)        12,740 (49%)

Equivalent units of production             428,500                 421,740

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