A department adds raw materials to a process at the beginning of the process and incurs conversion costs uniformly throughout the process.For the month of January, there were no units in the beginning work in process inventory; 80,000 units were started into production in January; and there were 20,000 units that were 40% complete in the ending work in process inventory at the end of January.What were the equivalent units of production for materials for the month of January?

Question

Quizplus · Accepted Answer

Since raw materials are added at the beginning of the process, all units started into production are considered 100% complete for materials. Therefore, the equivalent units for materials are the same as the units started, which is 80,000 units.

A Department Adds Raw Materials to a Process at the Beginning