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Multiple Choice Question 70 A process with 1700 units of beginning work in process, completed and...

Multiple Choice Question 70

A process with 1700 units of beginning work in process, completed and transferred out 24200 units during a period. There were 9800 units in the ending work in process that were 50% complete as to conversion costs. Materials are added 70% at the beginning of the process and 30% when the units are 90% complete. How much is equivalent units of production for the period for material costs?

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Answer #1

Here, Weighted average method can only be applied as degree of completion of begining work in process inventory is not given.

Hence, the equivalent units of production for material cost is as under:

Equivalent Units:
UNITS Material Cost
% Completion Units
Units completed and transferred out 24200 100% 24,200
Ending Work in Process 9800 0% 0 (as only 50% completed)
Total Equivalent units 34000 24,200
Answer is:
EUP of material cost = 24,200 units
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