Question

Equivalent Units of Materials Cost The Rolling Department of Kraus Steel Company had 3,400 tons in beginning work in process inventory (80% complete) on October 1. During October, 55,900 tons were completed. The ending work in process inventory on October 31 was 2,800 tons (50% complete). What are the total equivalent units for direct materials for October if materials are added at the beginning of the process?

Answer 1

Step-by-step explanation:

The process adopted by Kraus steel is process cost. A process cost is used to assign cost when there is a mass production of identical goods with continuous and various stages of production

Input Conversion% Output

Opening inventory 3,400 80 2720

October process 55,900 100 55900

59,300 58620

Closing Inventory 2800 50 1400

Total units 62100 60020