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A department adds raw materials to a process at the beginning of the process and incurs...

  1. 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 work in process inventory; 90,000 units were started into production in January; and there were 20,000 units that were 40% complete in the ending work in process inventory at the end of January. What were the equivalent units of production for materials for the month of January?

    90,000 equivalent units

    72,000 equivalent units.

    60,000 equivalent units

    80,000 equivalent units

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Answer #1

Correct answer------------90,000 equivalent units

Working

Statement of Equivalent Units(Weighted average)
Material
Units Complete % Equivalent units
Transferred out                    70,000 100%                    70,000
Ending WIP                    20,000 100%                    20,000
Total                    90,000 Total                    90,000
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