The following information pertains to a company’s Finishing Department operations in May. Units % Completion Work-in-process,...

The following information pertains to a company’s Finishing Department operations in May.

	Units	% Completion
Work-in-process, May 1	2,000	40%
Units started during May	10,000
Units completed and transferred to FG	8,000
Work-in-process, May 31	?	25%

Materials are added at the end of the process, and conversion costs are incurred evenly throughout the process. The equivalent units of materials added during May were

A.8,000
B.8,200
C.9,100
D.10,000

Solutions

Expert Solution

Answer: A. 8,000

Calculations:


Work in process, May 1	2,000
Units started during May	10,000
Total units to be accounted for	12,000
Less: Units completed and transferred to FG	-8,000
Work in process, May 31	4,000

	Materials
Units completed and transferred out to FG:
Work in process May 1 [2,000 x 100%]	2,000
Units started and completed during May [(8,000 - 2,000) x 100%]	6,000
Work in process, May 31 [4,000 x 0%]	0
Equivalent units of materials	8,000

*Given that Materials added at the end. So, Beginning materials were 100 % completed and Ending materials were 0% completed.

Thus, Option A is correct and remaining options are incorrect.

ekkarill92 answered 2 years ago

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