Use the following data from a company using a process costing system to answer the question(s)below. Beginning Work in Process Inventory on June 1 :
1,000 units - 100 percent complete as to direct materials
80 percent complete as to conversion costs

Units Started During June:
6,500 units

Ending Work in Process Inventory on June 30:
1,200 units - 100 percent complete as to direct materials
40 percent complete as to conversion costs
The FIFO process costing method is used by the company.
Equivalent units for direct materials during the month totaled

Question

Use the following data from a company using a process costing system to answer the question(s)below. Beginning Work in Process Inventory on June 1 : 
1,000 units - 100 percent complete as to direct materials
 80 percent complete as to conversion costs

Units Started During June: 
6,500 units

Ending Work in Process Inventory on June 30: 
1,200 units - 100 percent complete as to direct materials
40 percent complete as to conversion costs 
The FIFO process costing method is used by the company.
Equivalent units for direct materials during the month totaled

Quizplus · Accepted Answer

Equivalent units for direct materials are equal to the units started during the month plus the equivalent units in the beginning work in process inventory. In this case, the units started during the month are 6,500 and the equivalent units in the beginning work in process inventory are 1,000 units * 100% = 1,000 units. Therefore, the total equivalent units for direct materials during the month are 6,500 + 1,000 = 7,500 units.

Use the Following Data from a Company Using a Process