A department adds raw materials to a process at the beginning of the process and incursconversion costs uniformly throughout the process. For the month of January, there wereno units in the beginning work in process inventory; 60,000 units were started intoproduction in January; and there were 15,000 units that were 40% complete in theending work in process inventory at the end of January. What were the equivalent unitsof production for materials for the month of January?

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Business

Turner Curry

25 February, 13:46

A department adds raw materials to a process at the beginning of the process and incursconversion costs uniformly throughout the process. For the month of January, there wereno units in the beginning work in process inventory; 60,000 units were started intoproduction in January; and there were 15,000 units that were 40% complete in theending work in process inventory at the end of January. What were the equivalent unitsof production for materials for the month of January?

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Marley · Answer 1

The equivalent units of production for materials for the month of January is $66,000 units

Explanation:

The computation of the equivalent units of production is shown below:

= Production units in January + Completed units at the end of the year * completed percentage

= 60,000 units + 15,000 units * 40%

= 60,000 units + 6,000 units

= 66,000 units

For computing the equivalent units of production, we considered both the things i. e production units, and completed units