Question

Equivalent Units of Materials Cost The Rolling Department of Oak Ridge Steel Company had 3,200 tons in beginning work in process inventory (60% complete) on July 1. During July, 52,500 tons were completed. The ending work in process inventory on July 31 was 2,600 tons (30% complete).

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

Answer 1

Solution

Equivalent units for material = 55,100

Working

Statement of Equivalent Units(Weighted average)
			Material
	Units			Complete %	Equivalent units
Transferred out	52,500			100%	52,500
Ending WIP	2,600			100%	2,600
Total	55,100			Total	55,100