11Department A had 5000 units in work in process that were 6

11.Department A had 5,000 units in work in process that were 60% completed as to labor and overhead at the beginning of the period; 34,000 units of direct materials were added during the period; 31,000 units were completed during the period; and 2,000 units were 80% completed as to labor and overhead at the end of the period. All materials are added at the beginning of the process. The first-in, first-out method is used to cost inventories. The number of equivalent units of production for material costs for the period was a.34,000 b.29,000 c.32,000 d.29,800

Solution

Beginning work in process 5,000 completed & transferred 37,000 units started during the year 34,000 ending work in process 2,000 units to be accounted 39,000 units accounted for 39,000 Equivalent units material % materials units beginning work in process 5,000 - 0 completed during the year 32,000 100% 32,000 completed and transferred 37,000 - ending work in process 2,000 100% 2,000 Equivalent units for materials 34000 Answer option a ) 34,000 units