Question

Equivalent Units of Materials Cost

The Rolling Department of Kraus Steel Company had 3,100 tons in beginning work in process inventory (90% complete) on October 1. During October, 51,400 tons were completed. The ending work in process inventory on October 31 was 2,600 tons (80% 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:

	Whole Units	Percent Materials Added in October	Equivalent Units for Materials
Inventory in process, October 1...................................	3,100	0%	0
Started and completed during October........................	48,300*	100%	48,300
Transferred out of Rolling (completed)........................	51,400		48,300
Inventory in process, October 31.................................	2,600	100%	2,600
Total units to be assigned costs...................................	54,000		50,900

* 51,400 – 3,100