The Molding Department of Boswell Company has the following production data: beginning work process 30,000 units (60% complete), started into production 510,000 units, completed and transferred out 480,000 units, and ending work in process 60,000 units (40% complete). Assuming materials are entered at the beginning of the process, equivalent units for materials are:
A) 540,000.
B) 450,000.
C) 480,000.
D) 570,000.

Question

Quizplus · Accepted Answer

Equivalent units for materials are calculated as follows:Beginning work in process: 30,000 units x 60% = 18,000 equivalent unitsUnits started into production: 510,000 units x 100% = 510,000 equivalent unitsTotal equivalent units: 18,000 + 510,000 = 528,000 equivalent unitsEnding work in process: 60,000 units x 40% = 24,000 equivalent unitsTotal equivalent units for materials: 528,000 + 24,000 = 540,000 equivalent units

The Molding Department of Boswell Company Has the Following Production