Department A had 4,700 units in work in process that were 80% completed as to la

Question

Department A had 4,700 units in work in process that were 80% completed as to labor and overhead at the beginning of the period; 25,300 units of direct materials were added during the period; 27,200 units were completed during the period; and 2,800 units were 35% completed as to labor and overhead at the end of the period. All materials are added at the beginning of the process. The first-in, first-out method is used to cost inventories.

The number of equivalent units of production for material costs for the period was

a.30,000

b.25,300

c.22,500

d.27,200

Explanation / Answer

Conclusion: Equivalent Units of Production for Materials Cost = 25300 Units (i.e. option b)

Statement of Equivalent Production Units In Particulars Units Out Material % Quantity 4700 Opening Work in Process 4700 - - 25300 Issued & Completed 22500 100% 22500 - Closing Work in Process 2800 100% 2800 30000 30000 25300

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