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Scrat [10]
3 years ago
7

The Marshall Company has a process costing system. All materials are added when the process is first begun. At the beginning of

September, there were no units of product in process. During September 65,000 units were started; 6,500 of these were still in process at the end of September and were 3/5 finished. The equivalent units of material in September were:____________
Business
1 answer:
Oliga [24]3 years ago
5 0

Answer:

The equivalent units of of materials in September = 62,400 units

Explanation:

<em>Equivalent units are useful to apportion cost between work in progress and completed units. They are notional whole units which represent incomplete work</em>

Equivalent Units = Degree of work completed (%) × inventory units

Items                        units            workings           Equivalent units

Completed unit        58,500      58,500× 100%  =     58,500

Closing WIP              6,500        6,500 × 3/5   =       <u>3,900</u>

Total equivalent units of materials                            <u>62,400.</u>

The equivalent units of of materials in September = 62,400 units

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