Equivalent Units of Materials Cost The The Bottling Departme

Equivalent Units of Materials Cost The The Bottling Department of Rocky Springs Beverage Company had 2,900 ounces in beginning work ending work in process inventory was 2,400 ounces (60% complete) process inventory 20% compet During the per od 48, ounces were completed. What are the total equivalent units for direct materials if materials are added at the beginning of the process? units

Solution

Assuming FIFO method 1 Equivalent units for direct materials = (48700-2900)+2400= 48200 2 Equivalent units for conversion costs = (2598*60%)+(43300-2598)+(3897*20%)= 43040