A department adds raw materials to a process at the beginnin

A department adds raw materials to a process at the beginning of the process and incurs conversion costs uniformly throughout the process. For the month of January, there were no units in the beginning work in process inventory; 91100 units were started into production in January; and there were 20400 units that were 40% complete in the ending work in process inventory at the end of January. What were the equivalent units of production for materials for the month of January?

Solution

total units started

91100

units in work in progress inventory

20400

units transferred

70700

units transferred

100% complete with respect to material

70700

units in work in progress inventory

100% complete with respect to material

20400

equivalent units of material

70700+20400

91100