Question

The rolling department of jabari steel company had 1,800 tons in beginning work in process inventory (30% complete) on october 1. during october, 30,000 tons were completed. the ending work in process inventory on october 31 was 1,500 tons (10% complete). what are the total equivalent units for direct materials for october if materials are added at the beginning of the process?

1) Materials: 19,200; Conversion costs: 19,200
2) Materials: 19,200; Conversion costs: 18,000
3) Materials: 19,200; Conversion costs: 18,600
4) Materials: 18,000; Conversion costs: 18,600

Answer 1

To calculate the total equivalent units for direct materials and conversion costs, one must consider the percentage completion of the beginning and ending inventory, along with the units completed. For materials, all inventory is 100% complete as they are added at the beginning, resulting in a sum of beginning inventory, units completed, and ending inventory. For conversion costs, each stage's completion percentage must be applied to calculate the equivalent units.

Step-by-step explanation:

The student has asked a question related to the calculation of total equivalent units for direct materials and conversion costs for the rolling department of Jabari Steel Company. To calculate the total equivalent units, we need to consider the beginning inventory, the units completed during the month, and the ending inventory, accounting for the percentage completion of each inventory stage.

First, let's calculate the total equivalent units for materials:

1. Beginning inventory: 1,800 tons (already 100% complete for materials since they are added at the beginning of the process).
2. Units completed during October: 30,000 tons (100% complete for materials).
3. Ending inventory: 1,500 tons * 100% (since materials are added at the beginning, all ending inventory is considered 100% complete for materials).

Therefore, total equivalent units for materials = 1,800 + 30,000 + 1,500 = 33,300 tons.

Now, for the conversion costs:

1. Beginning inventory: 1,800 tons * 30% completion = 540 equivalent units.
2. Units completed during October: 30,000 tons (100% complete for conversion costs, so 30,000 equivalent units).
3. Ending inventory: 1,500 tons * 10% completion = 150 equivalent units.

Total equivalent units for conversion costs = 540 + 30,000 + 150 = 30,690 tons.

Since the options provided do not match the calculated values, this might indicate a transcription error in the question or the options provided. It is important to ensure that the numbers and options given in a question are accurate to calculate the correct answer.