Question

Sheffield Company had the following department data: Physical Units Work in process, July 1 30600 Completed and transferred out 165500 Work in process, July 31 45900 All materials are added at the beginning of the process. What is the total number of equivalent units for materials in July? 211400. 242000. 165500. 180800.

Answer 1

Equivalent units of production (direct materials)= 211,400

Step-by-step explanation:

Giving the following information:

Completed and transferred out 165,500

Work in process, July 31 45,900

All materials are added at the beginning of the process.

If all materials are added at the beginning of the process, the percentage of completion is 100%. To calculate the equivalent units, we need to use the following formula:

Units completed and transfer out + Equivalent units in ending inventory WIP (units*%completion)= Equivalent units of production

Equivalent units of production (direct materials)= 165,500 + (45,900*1)

Equivalent units of production (direct materials)= 211,400