Question

The Marshall Company has a process costing system. All materials are added when the process is first begun. At the beginning of September, there were no units of product in process. During September 65,000 units were started; 6,500 of these were still in process at the end of September and were 3/5 finished. The equivalent units of material in September were:____________

Answer 1

The equivalent units of of materials in September = 62,400 units

Step-by-step explanation:

Equivalent units are useful to apportion cost between work in progress and completed units. They are notional whole units which represent incomplete work

Equivalent Units = Degree of work completed (%) × inventory units

Items units workings Equivalent units

Completed unit 58,500 58,500× 100% = 58,500

Closing WIP 6,500 6,500 × 3/5 = 3,900

Total equivalent units of materials 62,400.

The equivalent units of of materials in September = 62,400 units