Babette Manufacturing produces plastic toys and uses process costing.There are three processing departments-Assembling,Finishing,and Packaging.On January 1,the Finishing Department had 2000 units of partially processed product in production.During January,31,000 units were transferred in from the Assembling Department and 29,000 units were completed and transferred out.At the end of the month,4000 units of partially processed products remained in the Finishing Department.The weighted- average method is used.See additional details below. Finishing Department,ending balance at January 31
leercent completed for materials cost: $94\%$
Percent completed for conversion cost: $70 \%$ What was the number of equivalent units for the month of January,with respect to direct materials,for the Finishing Department?

Question

Quizplus · Accepted Answer

To find the equivalent units for direct materials, we need to consider the partially processed units in the beginning inventory, the units transferred in from the Assembling Department and the units still in process at the end of the month.

Equivalent units = Units completed and transferred out + (Ending work-in-process inventory × Percentage completion) 
= 29,000 units + (4,000 units × 100%)
= 33,000 units

Therefore, the number of equivalent units for direct materials is 33,000 units.

Babette Manufacturing Produces Plastic Toys and Uses Process Costing 94%94\%94% Percent Completed for Conversion Cost

Babette Manufacturing Produces Plastic Toys and Uses Process Costing $94\%$ Percent Completed for Conversion Cost