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 uniformly throughout the process. For the month of January, there were no units in the beginning work in process inventory; 60,000 units were started into production in January; and there were 15,000 units that were 40% complete in the ending work in process inventory at the end of January. What were the equivalent units of production for materials for the month of January?

a.   66,000 equivalent units.

b.   54,000 equivalent units.

c.   45,000 equivalent units.

d.   60,000 equivalent units.

Explanation / Answer

Total units for for production added were 60,000 and only 15,000 units were 40% complete therefore equivalent units of production for materials for month for january is 60000 x 100% = 60000 equivalent units

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