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Problem 3

The document summarizes production information for Detergent-DK processed in Department X of The Southern Company during August. It provides the beginning work in process of 15,000 liters at 55% completion, 240,000 liters started during the month, and an ending work in process of 10,000 liters at 90% completion. It then asks to prepare a quantity schedule and compute equivalent units using the weighted average and FIFO methods.

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Betty Santiago
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67 views2 pages

Problem 3

The document summarizes production information for Detergent-DK processed in Department X of The Southern Company during August. It provides the beginning work in process of 15,000 liters at 55% completion, 240,000 liters started during the month, and an ending work in process of 10,000 liters at 90% completion. It then asks to prepare a quantity schedule and compute equivalent units using the weighted average and FIFO methods.

Uploaded by

Betty Santiago
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

The Southern Company produces a cleaning product known as Detergent-DK.

The product
is processed through two departments – department X and Department Y. The materials
are added at the beginning of the process in department X. The information relating to
Detergent-DK processed in department X during the month of August is given below:

 Work in process, August 1: 15,000 liters (55% complete)


 Started into processing during August: 240,000 liters
 Work in process, August 31: 10,000 liters (90% complete)

The percentages of completion of beginning and ending work in process inventories given
above are related to conversion cost only.

Required: Prepare a quantity schedule and compute equivalent units of production for


department X using:

1. weighted average method


2. FIFO method

Solution

1. Quantity schedule and equivalent units – weighted average method:


*15,000 liters + 240,000 liters – 10,000 liters
= 245,000 liters

2. Quantity schedule and equivalent units – FIFO method:

*Work required to complete liters in work in process beginning inventory:


100% – 55% = 45%
15,000 liters × 45% = 6,750 liters

**240,000 liters started – 10,000 liters in ending work in process


= 230,000 liters started and completed during August
or
245,000 liters completed and transferred out – 15,000 liters in beginning inventory
= 230,000 liters started and completed during August

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