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3 October, 15:46

Equivalent Units of Materials Cost The Rolling Department of Kraus Steel Company had 200 tons in beginning work in process inventory (60% complete) on October 1. During October, 3,900 tons were completed. The ending work in process inventory on October 31 was 300 tons (25% complete). What are the total equivalent units for direct materials for October if materials are added at the beginning of the process

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  1. 3 October, 17:48
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    The total equivalent units for direct materials for October is 4,200

    Explanation:

    The Concept of Equivalent Units measures the number of units completed in terms of input element introduced in the process.

    The Equivalent Units are Calculated on the units ending that is on the Units Completed and Units of Closing Work in Process

    Note that materials are added at the beginning of the process

    Units Completed

    Are 100% complete in terms of Raw Materials

    Equivalent units = 3900 * 100 % = 3900

    Units of Closing Work in Process

    Are 100% complete in terms of Raw Materials

    Equivalent units = 30 * 100 % = 300

    Total Equivalent Units = 3900+300 = 4,200
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