Assume that 6,000 units were in beginning WIP inventory,36,000 were started,32,000 were completed,and 10,000 were in ending WIP inventory.Direct materials are added at the beginning of the process.What are the total equivalent units for direct materials?

Question

Quizplus · Accepted Answer

Since direct materials are added at the beginning of the process, both the beginning WIP inventory and the units started in the current period are assumed to be 100% complete for direct materials. However, the units in ending WIP inventory are only partially complete for direct materials. Therefore, the total equivalent units for direct materials would be:
(6,000 + 36,000) = 42,000 units.

Assume That 6,000 Units Were in Beginning WIP Inventory,36,000 Were