Question

The Molding Department of Kennett Company has the following production data: beginning work in process 25,000 units (60% complete), started into production 425,000 units, completed and transferred out 400,000 units, and ending work in process 50,000 units (40% complete).
Assuming materials are entered at the beginning of the process, equivalent units for materials are:______________.

Answer 1

Answer:

450,000 units

Explanation:

This question asks to calculate the equivalent units of materials. It must be known that equivalent units are calculated by multiplying the number of physical units by percentage of completion.

The question assumes that materials are entered at the beginning of the process.

Mathematically, the equivalent units for materials = started into production + Beginning work in process

= 25,000 units + 425,000 units = 450,000 units