Assume that 9200 units were in beginning WIP Inventory, 35,500 were started, 35,000 were completed, and 9700 were in ending WIP Inventory. Direct materials are added at the beginning of the process. What are the total equivalent units for direct materials?
A)44,700
B)45,200
C)44,200
D)35,500

Question

Quizplus · Accepted Answer

Since direct materials are added at the beginning of the process, the total equivalent units for direct materials would include all units started plus the beginning work in process inventory, which equals 35,500 (started) + 9,200 (beginning WIP) = 44,700. The ending WIP does not affect the calculation because materials are added at the beginning.

Assume That 9200 Units Were in Beginning WIP Inventory, 35,500