Question

The Rolling Department of Kraus Steel Company had 200 tons in beginning work in process inventory (60% complete) on October 1. During October, 3,900 tons were completed. The ending work in process inventory on October 31 was 300 tons (25% complete). What are the total equivalent units for direct materials for October if materials are added at the beginning of the process?

Answer 1

As the units are added at the beginning of the process, they 100% completed when they are introduced in the process

	Materials
Total units completed	3900
(-) Beginning inventory units	200
Units started and completed during the period	3700
(+) Beginning work in process completed during the period * ( 100% - % Completion )	0 [ 200 * ( 100% - 100% ) ]
(+) Ending work in process completed during the period * % Completion	300 [ 300 * 100% ]
Equivalent units	4000