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The Bottling Department of Rocky Springs Beverage Company had 4,000 ounces in beginning work in process...

The Bottling Department of Rocky Springs Beverage Company had 4,000 ounces in beginning work in process inventory (40% complete). During the period, 67,100 ounces were completed. The ending work in process inventory was 3,400 ounces (10% complete).

What are the total equivalent units for direct materials if materials are added at the beginning of the process?
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Answer #1

Units completed and transferred out = 67,100

Ending work in process inventory = 3,400

Since direct materials are added at the beginning of the process, hence ending work in process inventory consists of 100% complete material.

Equivalent units of direct materials = Units completed and transferred out+ Ending work in process inventory

= 67,100+3,400

= 70,500

Kindly comment if you need further assistance. Thanks‼!

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