Question

A department adds raw materials to a process at the beginning of the process and incursconversion costs uniformly throughout the process. For the month of January, there wereno units in the beginning work in process inventory; 60,000 units were started intoproduction in January; and there were 15,000 units that were 40% complete in theending work in process inventory at the end of January. What were the equivalent unitsof production for materials for the month of January?

Answer 1

The equivalent units of production for materials for the month of January is $66,000 units

Step-by-step explanation:

The computation of the equivalent units of production is shown below:

= Production units in January + Completed units at the end of the year × completed percentage

= 60,000 units + 15,000 units × 40%

= 60,000 units + 6,000 units

= 66,000 units

For computing the equivalent units of production, we considered both the things i.e production units, and completed units