Assume 21,500units were in beginning WIP; 44,200 units were started; 56,000 units were completed; and 9700 units were in ending WIP. Materials are added at the beginning of the process. What is the total number of equivalent units for materials?
A)53,900
B)77,500
C)44,200
D)65,700

Question

Quizplus · Accepted Answer

Equivalent units are calculated by adding the partially completed units to the fully completed units. Thus, the total equivalent units for materials would be the sum of:

1) Materials for units completed and transferred out: 56,000 units
2) Materials for units still in ending work in process: (9700 units x 100% completion) = 9700 units
3) Materials for units started and completed during the period: (44,200 units - 21,500 units) = 22,700 units

Total equivalent units for materials = 56,000 + 9700 + 22,700 = 86,400

Therefore, the best choice is D.

Assume 21,500units Were in Beginning WIP; 44,200 Units Were Started;