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

Question

A department adds all 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; 89700 units were started into production in January; and there were 20900 units that were 50% 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?

Explanation / Answer

WIP, Beg. = 0

Started in Prod’n = 89,700

Total Units = 89,700

Transferred Out = 68,800 (89,700 – 20,900)

WIP, End’g. = 20,900 * 0.5 = 10,450

Total Units 89,700 = 79,250 equivakent units

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