DM are added at the beginning of the process Physical units

DM are added at the beginning of the process.

Physical units are as follows:
Beginning WIP = 40,000 units, 80% completed last period.
Of the 76,000 units started this period, only 42,000 were complete at the end of the period.
Ending WIP was 60% complete as to CC.

Costs are as follows:
Beginning WIP: DM $41,080; CC $95,928
Current month costs: DM $90,000; CC $157,000

What are the DM equivalent units for units started and completed?

34,000

82,000

116,000

20,400

Solution

Calculate direct material equivalent units for started and completed :

Direct material equivalent unit = 40000+42000 = 82000

So answer is b) 82000