In the month of June, a department had 12,000 units in beginning work in process that were 70% complete. During June, 48,000 units were transferred into production from another department. At the end of June there were 6,000 units in ending work in process that were 40% complete. Materials are added at the beginning of the process, while conversion costs are incurred uniformly throughout the process. The equivalent units of production for materials for June were
A) 54,000 equivalent units.
B) 60,000 equivalent units.
C) 62,400 equivalent units.
D) 48,000 equivalent units.

Question

Quizplus · Accepted Answer

The equivalent units of production for materials are calculated by adding the units completed and transferred out to the equivalent units in ending work in process. Since materials are added at the beginning, all units started and completed during the month are fully counted. Therefore, 54,000 units (12,000 beginning + 48,000 transferred in - 6,000 ending) are completed and transferred out, and the 6,000 units in ending work in process are fully counted for materials, totaling 60,000 equivalent units.

In the Month of June, a Department Had 12,000 Units