Question

A process with 1200 units of beginning work in process, completed and transferred out 26300 units during a period.

There were 9000 units in the ending work in process that were 50% complete as to conversion costs. Materials are
added 80% at the beginning of the process and 20% when the units are 90% complete with respect to conversion.
How much is equivalent units of production for the period for material costs?
a) 31700 equivalent units.
b) 35300 equivalent units.
c) 28100 equivalent units.
d) 33500 equivalent units.

Answer 1

The equivalent units of production for material costs is 30,800 units.

Step-by-step explanation:

To calculate the equivalent units of production for material costs, we need to add together the units completed and transferred out with the units in ending work in process, adjusted for the percentage of completion.

In this case, the units completed and transferred out are 26,300, and the units in ending work in process at 50% completion are 4,500 (9,000 units * 50%). Therefore, the equivalent units of production for material costs is 26,300 + 4,500 = 30,800 units.