Assume 10,000 units were in beginning WIP; 40,000 units were started; 43,000 units were completed; and 7,000 units were in ending WIP.Materials are added at the beginning of the process.There are total equivalent units for materials.

Question

Quizplus · Accepted Answer

The total equivalent units for materials is the sum of units in beginning WIP, units started and units in ending WIP. Therefore, total equivalent units for materials = 10,000 + 40,000 + 7,000 = 57,000. However, since materials are added only at the beginning of the process, the equivalent units for ending WIP must be deducted. Hence, the correct answer is 57,000 - 7,000 = 50,000. Therefore, the best choice is B.

Assume 10,000 Units Were in Beginning WIP; 40,000 Units Were