Super-Tech Industries had the following department information about physical units and percentage of completion: $$\begin{array} { l c }
& \text { Physical Units } \
\text { Work in process, June } 1 ( 75 \% ) & 8,000 \
\text { Completed and transferred out } & 22,000 \
\text { Work in process, June } 30 ( 50 \% ) & 12,000
\end{array}$$ If materials are added at the beginning of the production process what is the total number of equivalent units for materials during June?
A) 19000.
B) 34000.
C) 36000.
D) 28000.

Question

Super-Tech Industries had the following department information about physical units and percentage of completion: $$\begin{array} { l c } 
& \text { Physical Units } \
\text { Work in process, June } 1 ( 75 \% ) & 8,000 \
\text { Completed and transferred out } & 22,000 \
\text { Work in process, June } 30 ( 50 \% ) & 12,000
\end{array}$$ If materials are added at the beginning of the production process what is the total number of equivalent units for materials during June?
A) 19000.
B) 34000.
C) 36000.
D) 28000.

Quizplus · Accepted Answer

Since materials are added at the beginning of the production process, the equivalent units for materials would be the total of physical units completed and transferred out plus the entire physical units in the beginning and ending work in process. Thus, $22,000 + 8,000 + 12,000 = 42,000$. However, the correct calculation for equivalent units for materials considering the given data should account for the fact that materials are 100% complete for units transferred out and for the beginning and ending work in process inventories. The correct approach is to consider the units transferred out fully (22,000) and add the full count of units in the beginning and ending work in process because materials are added at the beginning (8,000 + 12,000). This mistake in explanation led to an incorrect justification for the choice. The correct calculation for equivalent units for materials should simply consider the units completed and transferred out fully, as materials are added at the beginning, making the equivalent units for materials equal to the number of units completed and transferred out plus any additional units in process, adjusted for their stage of completion if necessary. However, given the initial explanation, the calculation should directly reflect the total physical units involved without needing to adjust for completion percentage for materials, leading to a straightforward sum for materials added at the beginning.

Super-Tech Industries Had the Following Department Information About Physical Units