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

Question

Quizplus · Accepted Answer

Since direct materials are added at the beginning of the process, all units started and those in beginning inventory would have materials added to them. Therefore, the equivalent units for direct materials are the total units started plus the beginning inventory (50,000 + 12,000), minus the ending inventory, which is not relevant here since materials are added at the beginning. This gives a total of 62,000 units.

Claire Company Had 12,000 Units in the Beginning Work in Process