Equivalent Units of Materials Cost The Rolling Department of Oak Ridge Steel Company had 4,500 tons...
Equivalent Units of Materials Cost
The Rolling Department of Oak Ridge Steel Company had 4,500 tons in beginning work in process inventory (40% complete) on July 1. During July, 74,300 tons were completed. The ending work in process inventory on July 31 was 3,700 tons (40% complete).
What are the total equivalent units for direct materials for July if materials are added at the beginning of the process?
Homework Answers
Equivalent unit of material = (beginning WIP*Percent completion)+Unit started and completed+(Ending WIP*Percent completion)
Direct material = (4500*60%)+(69800*100%)+(3700*40%) = 73980 Units
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Equivalent Units of
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