Use this information about Super Co. to answer the questions that follow.

The following unit data were assembled for the assembly process of Super Co. for the month of April. Direct materials are added at the beginning of the process. Conversion costs are added uniformly over the production process. The company uses the FIFO method.

-The number of equivalent units produced with respect to direct materials costs is
A) 48,000
B) 49,000
C) 43,000
D) 53,000

Question

Use this information about Super Co. to answer the questions that follow.
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The following unit data were assembled for the assembly process of Super Co. for the month of April. Direct materials are added at the beginning of the process. Conversion costs are added uniformly over the production process. The company uses the FIFO method.​
  ​
-The number of equivalent units produced with respect to direct materials costs is
A) 48,000 
B) 49,000 
C) 43,000 
D) 53,000

Quizplus · Accepted Answer

To calculate the equivalent units produced with respect to direct materials costs, we need to add the units completed and transferred out (40,000) to the equivalent units in ending work in process (8,000). This gives us a total of 48,000 equivalent units produced with respect to direct materials costs.

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