Assume that 12,000 units were in the beginning work in process, 50,000 units were started during the period, 6,000 units were in the ending work in process, and direct materials are added at the beginning of the period. What are the equivalent units of production for direct materials?
A) 50,000
B) 38,000
C) 62,000
D) 56,000

Question

Quizplus · Accepted Answer

Since direct materials are added at the beginning of the period, all units started and those in the beginning work in process would have materials added to them. Therefore, the equivalent units for direct materials are the sum of units started during the period plus the beginning work in process units, minus the ending work in process units: 50,000 started + 12,000 beginning work in process - 6,000 ending work in process = 56,000. However, the correct calculation should be 50,000 started + 12,000 beginning work in process = 62,000, as the ending work in process does not subtract from the total since materials are added at the beginning.

Assume That 12,000 Units Were in the Beginning Work in Process