Question

Equivalent Units of Materials Cost

The Rolling Department of Kraus Steel Company had 6,200 tons in beginning work in process inventory (40% complete) on October 1. During October, 38,700 tons were completed. The ending work in process inventory on October 31 was 1,900 tons (20% complete).

What are the total equivalent units for direct materials for October if materials are added at the beginning of the process?
_____ units

Answer 1

	Total equivalent units for direct materials for October	34,400
	Rolling Department of Kraus Steel Company (FIFO)
		Actual Units
	Calculation of Physical UNITS:
	Units in beginning inventory	6200
	Units started during the period	34400
	Units to be accounted for	40600
		Actual Units	Equivalent Units
			Material	CC
	Units Completed and Transferred	38700
	From units in beginning inventory	6200	0	3720
	From units started	32500	32500	32500
	Units in ending inventory	1900	1900	380
A)	Equivalent Unit of production	40600	34400	36600