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

Question

A department adds raw materials to a process at the beginning of the process and incurs conversion costs uniformally throughout the process. For the month of January, there were no units in the beginning work in process inventory; 80,000 units were started into production in January; and there were 20,000 units that were 40% complete in the ending work in process inventory a the end of January. What were the equivalent units of production for materials for the month January? (A) 88,000 (B) 72,000 (C) 60,000 (D) 80,000

Explanation / Answer

80,000+0.4*20,000=88,000

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