The Marshall Company has a process costing system. All materials are added when the process is first begun. At the beginning of September, there were no units of product in process. During September 50,000 units were started; 5,000 of these were still in process at the end of September and were 3/5 finished. The equivalent units of material in September were:
A) 40,000.
B) 45,000.
C) 48,000.
D) 50,000.

Question

Quizplus · Accepted Answer

Since all materials are added at the start of the process, the equivalent units of material are equal to the total units started, which is 50,000.

The Marshall Company Has a Process Costing System