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Hielta Oy, a Finnish company, processes wood pulp for various manufacturers of paper products. Data relating to tons of pulp process during June are provided below: Percent Completed Tons of Pulp Materials Labor and OverheadWork in process, June 1 80,400 81% 24%Work in process, June 30 51,200 43% 17%Started into production during June 301,400 Required:1. Compute the number of tons of pulp completed and transferred out during June.Units completed and transferred out: 2. Compute the equivalent units of production for materials and for labor and overhead for June.Materials Labor and OverheadEquivalent units of production

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Zviko

Answer:

the equivalent units of production for materials = 352,616 units,

the equivalent units of production for for labor and overhead (conversion) = 339,304 units

Explanation:

First Determine the physical units that were Completed and Transferred out

Units Completed and Transferred = Units in Opening Work In Process  + Units Started During the Year - Units in Closing Work In Process

                                                        = 80,400 + 301,400 - 51,200

                                                        = 330,600

Calculation of Equivalent Units of Production for

1. Materials

Units Completed and Transferred ( 330,600 × 100%)   = 330,600

Units in Closing Work In Process ( 51,200 × 43%)          =   22,016

Total Equivalent Units of Production for Materials         = 352,616

2. Labor and Overhead

Units Completed and Transferred ( 330,600 × 100%)   = 330,600

Units in Closing Work In Process ( 51,200 × 17%)          =      8,704

Total Equivalent Units of Production for Conversion    = 339,304

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