Highlite Corporation Uses the Weighted-Average Method in Its Process Costing

question 139

Essay

Highlite Corporation uses the weighted-average method in its process costing.The following data pertain to its Formulation Department for November.
$$\begin{array} { | l | c | } \hline \text { Units in process, November 1: materials } 85 \% & 700 \\\text { complete, conversion } 75 \% \text { complete } & \\\hline \text { Units started into production during November } & 5,500 \\\hline \begin{array} { l } \text { Units completed and transterred to the next } \\\text { department }\end{array} & 4,700 \\\hline \begin{array} { l } \text { Units in process, November } 30 \text { : materials } 70 \% \\\text { complete, conversion } 25 \% \text { complete }\end{array} & 1,500 \\\hline\end{array}$$
Required:
Determine the equivalent units of production for the Formulation Department for November using the weighted-average method.

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Definitions:

Exchange Notes

Financial instruments representing an agreement between parties to exchange interest payments or currency values over a set period.

Direct Write-off

An accounting method where uncollectible accounts receivable are written off directly against income at the time they are deemed irrecoverable.

Net Realizable Value

The estimated selling price of an item of inventory less any direct costs of disposal, such as sales commissions.

Allowance for Doubtful Accounts

A contra-asset account representing estimated uncollectible accounts receivable due to the customer's inability to pay.