A department adds raw materials to a process at the beginning of the process and incurs conversion costs uniformly throughout the process. For the month of January there were no units in the beginning work in process inventory; 90000 units were started into production in January; and there were 20000 units that were 40% complete in the ending work in process inventory at the end of January. What were the equivalent units of production for materials for the month of January?
A) 98000 equivalent units.
B) 82000 equivalent units.
C) 70000 equivalent units.
D) 90000 equivalent units.

Question

Quizplus · Accepted Answer

Since raw materials are added at the beginning of the process, the equivalent units for materials would be the same as the number of units started, which is 90,000 units. The completion percentage of the ending work in process inventory does not affect the calculation for materials when they are added at the beginning.

A Department Adds Raw Materials to a Process at the Beginning