Question

Department 1 completed and transferred out 450 units and had ending work in process inventory of 60 units. The ending inventory is 20% complete for materials and 60% complete for labor and overhead. The equivalent units of production for materials is

Answer 1

Answer:

The equivalent units of production for materials is 570.

Explanation:

Equivalent units measures the number of units completed to the extend of in puts introduced to the outputs.

Calculation of equivalent units of production for materials.

Units completed and transferred (450 × 100%)       450

Units in ending work in process ( 60 × 20 %)             12

Total equivalent units of production for materials   570

Conclusion :

The equivalent units of production for materials is 570.