Willingham uses a process-costing system for its single product, which is manufa

Question

Willingham uses a process-costing system for its single product, which is manufactured from Material X and Material Y. X and Y are introduced to the product as follows:
Material X: Added at the beginning of manufacturing
Material Y: Added at the 75% stage of completion
The company started and completed 136,000 units during the period, and had an ending work-in-process inventory amounting to 16,200 units, 35% complete. Which of the following choices correctly expresses the total equivalent units of production for Material X and Material Y?

Please show your work.

Material X Material Y     A. 148,150 141,670     B. 148,150 148,150     C. 152,200 136,000     D. 152,200 141,670     E. 152,200 148,150

Explanation / Answer

152,200 and $136,000 (which is Option C)

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Explanation:

Since, Material X has been added at the beginning of the stage, it will be 100% complete with respect to units added and completed during the period as well as for the ending inventory. Therefore, the total equivalent units for Material X would be 152,200 (136,000 + 16,200). The equivalent units for Material Y would be equal to the difference between the equivalent units for Material X and ending inventory or simply taken it would b equal to the units added and completed during the period which is equal to 136,000 units.

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