Question

The Filling Department of Eve Cosmetics Company had 5,400 ounces in beginning work in process inventory (20% complete). During the period, 89,300 ounces were completed. The ending work in process inventory was 4,500 ounces (30% complete).

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

Answer 1

Equivalent units for material using Weighted average method= 93,800

Working

Statement of Equivalent Units(Weighted average)
				Material		Conversion cost
	Units			Complete %	Equivalent units	Complete %	Equivalent units
Transferred out	89,300			100%	89,300	100%	89,300
Ending WIP	4,500			100%	4,500	16%	720
Total	93,800			Total	93,800	Total	90,020

Alternate answer using FIFO

Equivalent units for material using FIFO method= 88,400

Working

STEP 1 (FIFO)
Reconciliation of Units
	Units	% already completed		% completed this period
		Material		Material
Beginning WIP	5,400	100%		0%
Units introduced	88,400
Total units to be accounted for	93,800
Completed and Transferred unit	89,300	0%		100%
Ending WIP	4,500	0%		100%

.

STEP 2 (FIFO)
Equivalent Units
	Total Units	Material
Units Transferred:		% completed this period	Equivalent Units
From WIP	5,400	0%	-
From units started/Introduced	83,900	100%	83,900
Total	89,300		83,900
	Total Units	Material
Ending WIP		% completed this period	Equivalent Units
Total	4,500	100%	4,500
Total EUP	93,800		88,400