Department A had 4,000 units in work in process that were 60% completed as to conversion...

Department A had 4,000 units in work in process that were 60% completed as to conversion at the beginning of the period, 29,000 units of direct materials were added during the period, 31,000 units were completed during the period, and 2,000 units were 80% completed as to coversion at the end of the period. All materials are added at the beginning of the process. The first-in, first-out method is used to cost inventories. The number of equivalent units for Direct Material costs for the period was: a) 29,000 units b) 29,800 units c) 33,000 units d) 32,000 units

Expert Solution

The number of equivalent units for Direct Material costs for the period was: a) 29,000 units
Statement of Equivalent production
Particulars	Direct Materials	%completion	Equivalent mat	Conversion	%completion	Equivalent Conv
Opening WIP	4,000.00	0%	-	4,000.00	40%	1,600.00
Units started and completed = 31,000 - 4,000	27,000.00	100%	27,000.00	27,000.00	100%	27,000.00
ending WIP	2,000.00	100%	2,000.00	2,000.00	80%	1,600.00
Equivalent Units			29,000.00			30,200.00

ekkarill92 answered 1 year ago

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