Question

Equivalent Units of Materials Cost The Rolling Department of Kraus Steel Company had 3,400 tons in beginning work in process inventory (80% complete) on October 1. During October, 55,900 tons were completed. The ending work in process inventory on October 31 was 2,800 tons (50% complete). What are the total equivalent units for direct materials for October if materials are added at the beginning of the process?

Answer 1

Answer:

Explanation:

The process adopted by Kraus steel is process cost. A process cost is used to assign cost when there is a mass production of identical goods with continuous and various stages of production

                                           Input      Conversion%       Output

Opening inventory           3,400             80                 2720

October process               55,900         100                55900

                                            59,300                                58620

Closing Inventory                   2800          50                  1400

Total units                               62100                               60020