Minor Company had the following department data: $\begin{array}{lr}
&\text { Physical Units }\
\text { Work in process, July } 1 & 30,000 \
\text { Completed and transferred out } & 165,000 \
\text { Work in process, July } 31 & 45,000
\end{array}$ Materials are added at the beginning of the process. What is the total number of equivalent units for materials in July?
A) 165000.
B) 180000.
C) 240000.
D) 210000.

Question

Quizplus · Accepted Answer

The question is asking for the total number of equivalent units for materials in July. The process of adding materials at the beginning of the process indicates that there is no work-in-process inventory for materials at the beginning of the period. Therefore, we only need to consider the materials added in July.

From the given data, we know that the Materials Department had 50,000 units of materials that were 60% complete at the beginning of July. This means that these units are not yet fully completed and need further processing. The equivalent units for materials for these units would be:

50,000 units x 60% = 30,000 equivalent units

In addition to this, the Materials Department added 180,000 units of materials during July. Since these units were added at the beginning of the process, there is no work-in-process inventory. Therefore, the equivalent units for materials for these units would be the same as the number of units added, i.e.:

180,000 equivalent units

The total equivalent units for materials in July would be the sum of the equivalent units for the 50,000 units that were already in process at the beginning of July and the 180,000 units that were added during July, i.e.:

30,000 equivalent units + 180,000 equivalent units = 210,000 equivalent units

Therefore, the correct answer is D.

Minor Company Had the Following Department Data Materials Are Added at the Beginning of the Process