Question

Bonita Company had the following department information about physical units and percentage of completion: Physical Units Work in process, May 1 (60%) 59100 Completed and transferred out 179500 Work in process, May 31 (40%) 49800 If all materials are added at the beginning of the production process, what is the total number of equivalent units for materials during May?

Answer 1

Equivalent units of production= 229,300

Step-by-step explanation:

Giving the following information:

Physical Units Work in process, May 1 (60%) 59100

Completed and transferred out 179500

Work in process, May 31 (40%) 49800

To calculate the equivalent units, we need to use the following formula:

Units completed in the period + Equivalent units in ending inventory WIP (units*%completion) = Equivalent units of production

Equivalent units of production= 179,500 + 49,800*1

Equivalent units of production= 229,300

Because the direct material is added at the beginning of the process, the %of completion is 100%.