In the month of June a department had 20000 units in beginning work in process that were 70% complete. During June 90000 units were transferred into production from another department. At the end of June there were 10000 units in ending work in process that were 40% complete. Materials are added at the beginning of the process while conversion costs are incurred uniformly throughout the process. The equivalent units of production for materials for June were
A) 100000 equivalent units.
B) 110000 equivalent units.
C) 114000 equivalent units.
D) 90000 equivalent units.

Question

Quizplus · Accepted Answer

The equivalent units of production for materials are calculated by adding the units completed and transferred out to the equivalent units in ending work in process. Since materials are added at the beginning, all units in beginning and ending work in process are considered 100% complete for materials. Therefore, 90000 units completed + 10000 units in ending work in process = 100000 + 10000 = 110000 equivalent units.

In the Month of June a Department Had 20000 Units