For the month of June, the number of equivalent units of direct materials produced was:

Question

Quizplus · Accepted Answer

The number of equivalent units of direct materials produced is equal to the number of units completed and transferred out of production plus the number of units in ending work in process multiplied by the percentage of completion for direct materials. In this case, 500 units were completed and transferred out of production, and 250 units were in ending work in process, which were 60% complete for direct materials. Therefore, the number of equivalent units of direct materials produced is 500 + (250 * 0.60) = 750.

For the Month of June, the Number of Equivalent Units