Gantner Company had the following department information about physical units and percentage of completion: If materials are added at the beginning of the production process, what is the total number of equivalent units for materials during May?
A) 168,000.
B) 160,000.
C) 155,200.
D) 136,000.

Question

Gantner Company had the following department information about physical units and percentage of completion:  If materials are added at the beginning of the production process, what is the total number of equivalent units for materials during May?
A) 168,000. 
B) 160,000. 
C) 155,200. 
D) 136,000.

Quizplus · Accepted Answer

To calculate the total number of equivalent units for materials during May, we need to use the weighted average method by multiplying the percentage of completion with the number of physical units in each department and then adding them up. For Department A, the total equivalent units for materials are 50,000 x 100% = 50,000. For Department B, the total equivalent units for materials are 100,000 x 40% = 40,000. Therefore, the total equivalent units for materials during May are 50,000 + 40,000 = 90,000.

Gantner Company Had the Following Department Information About Physical Units