Alton Company uses a process-costing system for its single product. Material A i

Question

Alton Company uses a process-costing system for its single product. Material A is added at the beginning of the process; in contrast, material B is added when the units are 75% complete. The firm's ending work-in-process inventory consists of 6,000 units that are 80% complete. Which of the following correctly expresses the equivalent units of production with respect to materials A and B in the ending work-in-process inventory?

A, 4,800; B, 0.

A, 4,800; B, 4,800.

A, 6,000; B, 0.

A, 6,000; B, 4,800.

A, 6,000; B, 6,000.

A, 4,800; B, 0.

A, 4,800; B, 4,800.

A, 6,000; B, 0.

A, 6,000; B, 4,800.

A, 6,000; B, 6,000.

Explanation / Answer

Material A Entered at Beginning Material B When Unit are 75% Complete Units % of Completion Ending WIP 6000 80% Equivalent Unit for Each of Material: Material A 6000 Entered at Beginning Material B 6000 Since Units are 80% Complete; Entire Material should have been entered Material A Material B Equivalent Units 6000 6000

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