Question

A department adds raw materials to a process at the beginning of the process and incurs conversion costs uniformly throughout the process. For the month of January, there were no units in the beginning goods in process inventory; 110,000 units were started into production in January. There were 30,000 units that were 40% complete in the ending goods in process inventory at the end of January. What were the equivalent units of production for materials for the month of January?

Answer 1

110,000 units

Step-by-step explanation:

Given that

Started units in inventory = 110,000 units

Ending inventory units = 30,000 units

Completion percentage = 40%

Based on the above information, the equivalent units of production for the material is equal to the started units in inventory i.e 110,000 units as it already includes the ending inventory plus the given percentage is also considered for the same