During the month of May,Masters Company transferred 140,000 gadgets to Finished Goods Inventory.There was no beginning work-in-process inventory.The company had 40,000 gadgets in process at May 31 and the gadgets were 50 percent complete with respect to conversion costs.All direct materials are added at the end of the production process.The equivalent units for materials for May are ________.
A) 90,000
B) 140,000
C) 160,000
D) 180,000

Question

Quizplus · Accepted Answer

Since all direct materials are added at the end of the production process, the equivalent units for materials would be the total units transferred to Finished Goods Inventory (140,000 gadgets) plus the complete units in process (which in this case, there are none since materials are added at the end). Therefore, the equivalent units for materials are 140,000.

During the Month of May,Masters Company Transferred 140,000 Gadgets to Finished