During a period, 38,200 units were completed and 5,300 units were in ending WIP inventory. Ending WIP was 70% 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 must consider both the completed units and the units in ending WIP inventory that are 70% complete for direct materials.

Equivalent units for completed units = 38,200 units x 1 = 38,200 units
Equivalent units for ending WIP inventory = 5,300 units x 70% = 3,710 units

Total equivalent units for direct materials = 38,200 units + 3,710 units = 41,910 units

Therefore, the best choice is (C) 41,910.

During a Period, 38,200 Units Were Completed and 5,300 Units