Question

Aves Treats, Inc. produces bird seeds. All direct materials used in the production process are added at the beginning of the manufacturing process. Labor and overhead are added evenly thereafter, as each unit is mixed and packaged. Aves Treats uses process costing and had the following unit production information available for the months of June and July: June July Number of units in beginning work in process inventory 0 150 Number of units started during the month 750 950 Total number of units transferred to finished goods 600 850 The units remaining in work in process at the end of June were 30% complete. During the month of July, all of the beginning work in process units was completed and the units remaining in work in process at the end of the month were 60% complete. For the month of July, the number of equivalent units of direct materials produced was:

Answer 1

Answer:

950 units

Explanation:

Given that

For June month

Number of units in beginning work in process inventory = 0

Number of units started during the month = 750

Total number of units transferred to finished goods = 600

For July month

Number of units in beginning work in process inventory = 150

Number of units started during the month = 950

Total number of units transferred to finished goods = 850

The percentage ratio is also given

So, The computation of the number of equivalent units of direct materials produced on July month is shown below:

= Number of units started during the month

= 950 units

The number of units started = number of direct material produced

i.e 950 units = 950 units