During a period, 38,200 units were completed and 4,200 units were in ending WIP inventory. Ending WIP was 75% complete for direct materials and 50% complete for conversion costs. What are the equivalent units for direct materials?

Question

Quizplus · Accepted Answer

To calculate the equivalent units for direct materials, we need to consider both the completed units and the ending WIP inventory. 
Equivalent units for completed units = 38,200 units
Equivalent units for ending WIP inventory = 4,200 x 75% = 3,150 units
Total equivalent units = 38,200 + 3,150 = 41,350 units. 
Therefore, the best choice is B.

During a Period, 38,200 Units Were Completed and 4,200 Units