In a particular department, 8200 units were started and all but 800 were completed at the end of the period. These 800 were 70% complete for materials and 30% for conversion costs. Costs added were $55,400 for materials and $52,100 for conversion costs. What is the total number of equivalent units for direct materials?
A)7960
B)8760
C)7640
D)7400

Question

Quizplus · Accepted Answer

Total units started = 8200
Units completed = 8200 - 800 = 7400

For the 800 units that were not completed:
- Materials are 70% complete for 800 units, which means 560 units are equivalent to a full completion for materials.
- Conversion costs are 30% complete for 800 units, which means 240 units are equivalent to a full completion for conversion costs.

Equivalent units for materials = Units completed + Material equivalent units for incomplete units = 7400 + 560 = 7960.

Therefore, the answer is A) 7960.

In a Particular Department, 8200 Units Were Started and All