DM are added at the beginning of the process. Physical units are as follows: Beg
ID: 2404836 • Letter: D
Question
DM are added at the beginning of the process.
Physical units are as follows:
Beginning WIP = 40,000 units, 80% completed last period.
Of the 76,000 units started this period, only 42,000 were complete at the end of the period.
Ending WIP was 60% complete as to CC.
Costs are as follows:
Beginning WIP: DM $41,080; CC $95,928
Current month costs: DM $90,000; CC $157,000
What are the DM equivalent units for units started and completed?
34,000
82,000
116,000
20,400
a.34,000
b.82,000
c.116,000
d.20,400
Explanation / Answer
Calculate direct material equivalent units for started and completed :
Direct material equivalent unit = 40000+42000 = 82000
So answer is b) 82000
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