Perfect Pigments has 3200 gallons of paint in WIP Inventory, with 73% of materials already added. What are equivalent units in ending WIP Inventory for materials if the paint is 46% through the process?

Question

Quizplus · Accepted Answer

Since 73% of materials are already added to the 3200 gallons of paint, the equivalent units for materials in ending WIP Inventory are 73% of 3200, which equals 2336 gallons. The percentage through the process (46%) applies to conversion costs, not materials.

Perfect Pigments Has 3200 Gallons of Paint in WIP Inventory