Ankenbauer Company manufactures keyboards in a two-department process, Assembly and Finishing. Information on the first department, Assembly, follows:
There was no beginning inventory, and of the 400,000 units started in production 336,000 were completed and transferred to the Finishing department, while 64,000 units were still in process. These units had all materials added but were only 75 percent complete as far as conversion costs.
-The equivalent units for materials are
A) 336,000.
B) 400,000.
C) 384,000.
D) 64,000.

Question

Ankenbauer Company manufactures keyboards in a two-department process, Assembly and Finishing. Information on the first department, Assembly, follows:
  There was no beginning inventory, and of the 400,000 units started in production 336,000 were completed and transferred to the Finishing department, while 64,000 units were still in process. These units had all materials added but were only 75 percent complete as far as conversion costs.
-The equivalent units for materials are
A) 336,000. 
B) 400,000. 
C) 384,000. 
D) 64,000.

Quizplus · Accepted Answer

The equivalent units for materials are calculated based on the total units produced and the percentage of completion for materials. Without specific details on the percentage of completion or units in process, option B is typically the standard choice for full production.

Ankenbauer Company Manufactures Keyboards in a Two-Department Process, Assembly and Finishing