Question

Department A had 5,000 units in Work in Process that were 60% completed as to labor and overhead at the beginning of the period. 34,000 units of direct materials were added during the period, 31,000 units were completed during the period, and 8,000 units were 80% completed as to labor and overhead at the end of the period. All materials are added at the beginning of the process. The first-in, first-out method is used to cost inventories. The number of equivalent units of production for material costs for the period was

Answer 1

34,000 units

Step-by-step explanation:

The computation of the number of equivalent units of production for material costs is shown below:

= (Opening work in process × completion percentage) + (Completed units × completion percentage) + (ending work in process × completion percentage)

= (5000 × 0%) + ((31,000 - 5,000) × 100%) + (8000 × 100%)

= 34000 Units

Hence, the number of equivalent units for production is 34,000 units