Warren Industries uses a process-costing system for its single product, which is manufactured from Material X and Material Y.X and Y are introduced to the product as follows: Material X: Added at the beginning of manufacturing Material Y: Added at the 75% stage of completion The company started and completed 40,000 units during the period, and had an ending work-in-process inventory amounting to 8,000 units, 20% complete.Which of the following choices correctly expresses the total equivalent units of production for Material X and Material Y?

Question

Quizplus · Accepted Answer

To calculate the equivalent units of production for Material X and Material Y, we need to consider the units completed during the period and the ending work-in-process inventory.

For Material X: 
Units completed during the period = 40,000 
Ending work-in-process inventory = 8,000 units x 20% complete = 1,600 equivalent units 
Total equivalent units of production for Material X = 40,000 + 1,600 = 41,600

For Material Y: 
Units completed during the period = 40,000 
Ending work-in-process inventory = 8,000 units x 20% complete = 1,600 equivalent units 
Total equivalent units of production for Material Y = 40,000 + 1,600 = 41,600

Therefore, the correct choice is C.

Warren Industries Uses a Process-Costing System for Its Single Product