Southern Lake Chemical Manufactures a Product Called Zubek Using the Weighted-Average Method of Process Costing, the Equivalent Units

Southern Lake Chemical manufactures a product called Zubek. Direct materials are added at the beginning of the process, and conversion activity occurs uniformly throughout production. The beginning work-in-process inventory is 60% complete with respect to conversion; the ending work-in-process inventory is 20% complete. The following data pertain to May: $\begin{array}{lr}&\text { Units }\\\text { Work in process, May 1 } & 15,000 \\\text { Units started during May } & 60,000 \\\text { Units completed and transferred out } & 68,000 \\\text { Work in process, May } 31 & 7,000\end{array}$

$\begin{array}{llll}&& \text { Direct } & \text { Conversion } \\&\text { Total } & \text { Materials } & \text { Costs }\\\text { Work in process, May 1 } & \$ 41,250 & \$ 16,500 & \$ 24,750 \\\text { Costs incurred during May } & \underline{234,630} & \underline{72,000} & \underline{162,630} \\\text { Totals } & \underline{\$ 275,880} & \underline{\underline{\$ 88,500}} & \underline{\$ 187,380} \\\end{array}$ Using the weighted-average method of process costing, the equivalent units of direct materials total:

A) 68,000.
B) 69,400.
C) 74,000.
D) 75,000.
E) None of the answers is correct.