The Molding Department of Kennett Company has the following production data: beginning work in process 25,000 units (60% complete), started into production 425,000 units, completed and transferred out 400,000 units, and ending work in process 50,000 units (40% complete). Assuming materials are entered at the beginning of the process, equivalent units for materials are:
A) 450,000.
B) 375,000.
C) 400,000.
D) 475,000.

Question

Quizplus · Accepted Answer

Equivalent units for materials are calculated by adding the units completed and transferred out (400,000) to the ending work in process units (50,000) since materials are added at the beginning of the process. Thus, 400,000 + 50,000 = 450,000 equivalent units for materials.

The Molding Department of Kennett Company Has the Following Production