Question

During a​ period, 40,200 units were completed and​ 3,200 units were in ending WIP Inventory. Ending WIP was​ 95% complete for direct materials and​ 50% complete for conversion costs. What are the equivalent units for direct​ materials?

Answer 1

The equivalent units for direct materials are 43,240.

Step-by-step explanation:

Given:

During a​ period, 40,200 units were completed and​ 3,200 units were in ending WIP Inventory. Ending WIP was​ 95% complete for direct materials.

Now, to find the equivalent units for direct​ materials.

Complete units = 40,200.

Ending WIP (work in progress) Inventory = 3,200.

As, ending WIP was​ 95% complete for direct materials.

Thus, ending WIP Inventory = 95% of 3,200.

=
`(95)/(100) * 3,200`

`=0.95* 3,200`

`=\$3,040.`

Now, to get the equivalent units for direct​ materials by adding complete units and ending WIP Inventory:

`Complete\ units\ +\ ending\ WIP\ Inventory`

`=40,200+3,040`

`=43,240.`

Therefore, the equivalent units for direct materials are 43,240.