Question

Equivalent Units of Materials Cost The Rolling Department of Kraus Steel Company had 8,100 tons in beginning work in process inventory (50% complete) on October 1. During October, 50,800 tons were completed. The ending work in process inventory on October 31 was 2,500 tons (30% complete). What are the total equivalent units for direct materials for October if materials are added at the beginning of the process?

Answer 1

Please use the answer applicable, I have solved in both method weighted average and FIFO.

Equivalent units using Weighted average method= 80,100

Equivalent units using FIFO method= 75,500

Working

Statement of Equivalent Units(Weighted average)
			Material
	Units			Complete %	Equivalent units
Transferred out	50,800			100%	50,800
Ending WIP	2,500			100%	2,500
Total	53,300			Total	53,300

STEP 1 (FIFO)
Reconciliation of Units
	Units	% already completed	% completed this period
	Material		Material
Beginning WIP	8100	100%		0%
Units introduced	45,200
Total units to be accounted for	53,300
Completed and Transferred unit	50,800	0%		100%
Ending WIP	25,00	0%		100%

.

STEP 2 (FIFO)
Equivalent Units
	Total Units	Material
Units Transferred:	% completed this period	Equivalent Units
From WIP	8,100	0%	-
From units started/Introduced	42,700	100%	42,700
Total	50,800		42,700
	Total Units	Material
Ending WIP		% completed this period	Equivalent Units
Total	2,500	100%	2,500
Total EUP	53,300		45,200