Cuckoo Company produces plastic cups in a one- department process. The following information is available: $\begin{array}{ll}
\text { Work-in-process inventory, beginning } & -0- \
\text { Units started } & 60,000 \
\text { Units completed and transferred out } & 48,000 \
\text { Work-in-process inventory, ending } & 12,000
\end{array}$ The units still in process are 100% complete with respect to direct materials and 60% complete with respect to conversion costs. The equivalent units for materials are:
A) 36,000
B) 38,400
C) 60,000
D) 12,000

Question

Quizplus · Accepted Answer

The equivalent units for materials are 60,000 because all units (both completed and in process) are 100% complete with respect to direct materials.

Cuckoo Company Produces Plastic Cups in a One- Department Process