Question

Equivalent Units of Materials Cost

The Rolling Department of Kraus Steel Company had 11,900 tons in beginning work in process inventory (40% complete) on October 1. During October, 74,200 tons were completed. The ending work in process inventory on October 31 was 3,700 tons (60% 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

Answer- The total equivalent units for direct materials for October if materials are added at the beginning of the process are= 71660 units.

Explanation-

Statement of Equivalent Production units
Under FIFO Method
Particulars	Output Units	Equivalent Production
		%	Direct Materials
Beginning work in process	11900	60	7140
Started and completed during the period (74200 tons-11900 tons)	62300	100	62300
Trnasferred out of Rolling Dept.(completed)	74200		69440
Closing work in process	3700	60	2220
	77900		71660