Question

Elias Company has the following production data for January: -Beginning Work in Process Inventory, 0 units -Units completed and transferred out, 40,600 -Units in ending Work in Process Inventory, 13,039 that are 30% complete for conversion costs Materials are added only at the beginning of the process. Compute equivalent units of production for materials.

Answer 1

To compute equivalent units of production for materials, first calculate the equivalent units of production for the units completed and transferred out, which is 40,600 units. Next, calculate the equivalent units of production for the units in ending Work in Process Inventory, which is 3,911.7 units. The total equivalent units of production for materials is 44,511.7 units.

Step-by-step explanation:

To compute equivalent units of production for materials, first calculate the equivalent units of production for the units completed and transferred out. In this case, all 40,600 units completed and transferred out are considered 100% complete for materials. Therefore, the equivalent units of production for materials for these units is 40,600 units.

Next, calculate the equivalent units of production for the units in ending Work in Process Inventory. Since these units are 30% complete for conversion costs, they are also 30% complete for materials. Therefore, the equivalent units of production for materials for the 13,039 units in ending Work in Process Inventory is 30% x 13,039 units = 3,911.7 units.

The total equivalent units of production for materials is the sum of the equivalent units of production for the units completed and transferred out and the equivalent units of production for the units in ending Work in Process Inventory: 40,600 units + 3,911.7 units = 44,511.7 units.