Question

The Rolling Department of Kraus Steel Company had 3,600 tons in beginning work in process inventory (60% complete) on October 1. During October, 59,900 tons were completed. The ending work in process inventory on October 31 was 3,000 tons (30% complete). What are the total equivalent units for direct materials for October if materials are added at the beginning of the process?

Answer 1

Answer- The total equivalent units for direct materials for October if materials are added at the beginning of the process are = 58640 units.

Explanation-

Statement of Equivalent Production units
Particulars	Output Units	Equivalent Production
		%	Direct materials
Beginning work in process	3600	40	1440
Add- Started and completed during the period (59900 tons - 3600 tons)	56300	100	56300
Trnasferred out of Rolling Dept.(Completed)	59900		57740
Closing work in process	3000	30	900
Total units to be assigned costs	62900		58640