During a period, 40,000 units were completed and 3,500 units were in ending WIP inventory. Ending WIP was 80% complete for direct materials and 30% complete for conversion costs. What are the equivalent units for direct materials assuming that the weighted-average method is used?

Question

Quizplus · Accepted Answer

Equivalent units for direct materials = Units completed + (Ending inventory * Percentage of completion)
= 40,000 + (3,500 * 80%) 
= 40,000 + 2,800 
= 42,800

Therefore, the correct option is D.

During a Period, 40,000 Units Were Completed and 3,500 Units