The number of equivalent units of production for material costs for the period was
A) 39,000
B) 29,800
C) 29,000
D) 32,000

Question

Quizplus · Accepted Answer

The number of equivalent units of production for material costs is equal to the number of units completed and transferred out of production during the period, plus the number of units in ending work in process inventory multiplied by the percentage of completion for materials. In this case, the number of units completed and transferred out of production is 20,000, and the number of units in ending work in process inventory is 9,000. The percentage of completion for materials is 80%. Therefore, the number of equivalent units of production for material costs is 20,000 + (9,000 x 80%) = 39,000.

The Number of Equivalent Units of Production for Material Costs