The Refining Department of SweetBeet, Inc. had 76 comma 000 tons of sugar to account for in July. Of the 76 comma 000 tons, 45 comma 000 tons were completed and transferred to the Boiling Department, and the remaining 31 comma 000 tons were 75 % complete. The materials required for production are added at the beginning of the process. Conversion costs are added evenly throughout the refining process. The weightedminusaverage method is used. Calculate the total equivalent units of production for direct materials.

Question

Business

Aliza Dominguez

5 April, 01:56

The Refining Department of SweetBeet, Inc. had 76 comma 000 tons of sugar to account for in July. Of the 76 comma 000 tons, 45 comma 000 tons were completed and transferred to the Boiling Department, and the remaining 31 comma 000 tons were 75 % complete. The materials required for production are added at the beginning of the process. Conversion costs are added evenly throughout the refining process. The weightedminusaverage method is used. Calculate the total equivalent units of production for direct materials.

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Morgan Vance · Answer 1

The total equivalent units = $45,000 + $23, 250 = $68, 250

Explanation:

The question is to determine the total equivalent units of production for direct materials as follows:

The total to account for in the month of July = $76,000 tons of sugar

However, only 46,000 tons were completed and transferred

Also, the remaining 31,000 tons were only 75% complete

The equivalent cost is as follows

$45,000 tons completed and transferred = 45,000 tons of sugar x 100% = $45,000

31,000 tones of sugar completed at 75% = 31,000 x 75% = $23,250

The total equivalent units = $45,000 + $23, 250 = $68, 250