Question

In a particular​ department, 8,200 units were started and all but 800 were completed at the end of the period. These 800 were​ 70% complete for materials and​ 30% for conversion costs. Costs added were​ $55,400 for materials and​ $52,100 for conversion costs. What is the total number of equivalent units for direct​ materials?

Answer 1

To determine the equivalent units for direct materials, add the number of completed units (7,400) to the product of the percentage of completion for materials (70%) and the number of incomplete units (800), which results in 7,960 equivalent units for direct materials.

Step-by-step explanation:

The task is to calculate the equivalent units for direct materials in a department where 8,200 units were started, and all but 800 were completed. For the incomplete units, we are given that they are 70% complete with respect to materials. The equivalent units calculation counts each unit whether completed or in-process by its stage of completion relative to the input of materials.

To calculate the equivalent units for direct materials, we use the following steps:

1. First, we take the total number of units completed. This is simple; since out of 8,200 units started, all but 800 were completed, so we have 7,400 complete units.
2. Next, we calculate the equivalent units for the incomplete units. We have 800 units that are 70% complete with respect to materials. This gives us 800 units * 70% = 560 equivalent units for materials.
3. Now, we simply add the equivalent units of completed units to the equivalent units for the materials of incomplete units. Therefore, 7,400 + 560 = 7,960 equivalent units for direct materials.

Answer 2

Equivalent units for direct materials 8,020

Step-by-step explanation:

To calculate the problem, consider the following information.

Units completed during the year (8200-800) 7,400

+ Ending Work in Process (800*80%) 620

--------------------------------------------

Equivalent units for direct materials 8,020