Question

11.Department A had 5,000 units in work in process that were 60% completed as to labor and overhead at the beginning of the period; 34,000 units of direct materials were added during the period; 31,000 units were completed during the period; and 2,000 units were 80% completed as to labor and overhead at the end of the period. All materials are added at the beginning of the process. The first-in, first-out method is used to cost inventories. The number of equivalent units of production for material costs for the period was a.34,000 b.29,000 c.32,000 d.29,800

Answer 1

Beginning work in process			5,000	completed & transferred			37,000
units started during the year			34,000	ending work in process			2,000
units to be accounted			39,000	units accounted for			39,000
Equivalent units						material
				% materials		units
beginning work in process			5,000	-		0
completed during the year			32,000	100%		32,000
completed and transferred			37,000	-
ending work in process			2,000	100%		2,000
Equivalent units for materials						34000
Answer option a )		34,000 units