At Trapeze Corporation, direct materials are added at the beginning of the proce
ID: 2591766 • Letter: A
Question
At Trapeze Corporation, direct materials are added at the beginning of the process and conversions costs are uniformly applied. Other details include:
WIP beginning (50% for conversion)
20 comma 20020,200 units
Units started
129 comma 500129,500 units
Units completed and transferred out
106 comma 700106,700 units
WIP ending (60% for conversion)
43 comma 00043,000 units
Beginning WIP direct materials
$35,000
Beginning WIP conversion costs
$22,500
Costs of materials added
$384,100
Costs of conversion added
$271,125
What are the total equivalent units for direct materials?
WIP beginning (50% for conversion)
20 comma 20020,200 units
Units started
129 comma 500129,500 units
Units completed and transferred out
106 comma 700106,700 units
WIP ending (60% for conversion)
43 comma 00043,000 units
Beginning WIP direct materials
$35,000
Beginning WIP conversion costs
$22,500
Costs of materials added
$384,100
Costs of conversion added
$271,125
Explanation / Answer
Total equivalent units for direct materials = 106700+43000= 149700
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