The Rolling Department of Oak Ridge Steel Company had 5,100 tons in beginning work in process...

The Rolling Department of Oak Ridge Steel Company had 5,100 tons in beginning work in process inventory (90% complete) on July 1. During July, 85,400 tons were completed. The ending work in process inventory on July 31 was 4,300 tons (40% complete).

What are the total equivalent units for direct materials for July if materials are added at the beginning of the process?

Expert Solution

Given information in the question is

Rolling department of Oak ridge steel has

5100Tons of material at the begining of the Month and has been completed process 90% in the previous month

Therefore the percentage competition of work in the month of July is 10%

Tons 5100*10%=510

During the month of July total 85400 tons has been completed

The ending working progress at the end of the month of July 31st is 4300 and the respective % completion is 40% and the remaining 60% is expected to be completed in the next month that is August

Therefore the 4300*40%=1720

total equivalent units for the month of July if material is added at the beginning of the month is =510+85400+1720=87630

ekkarill92 answered 2 years ago

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