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Equivalent Units of Materials Cost The Rolling Department of Kraus Steel Company had 4,600 tons in beginning work in process inventory (70% complete) on October 1. During October, 77,000 tons were completed. The ending work in process inventory on October 31 was 3,900 tons (40% complete). What are the total equivalent units for direct materials for October if materials are added at the beginning of the process? 80,900 units

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Answer:

Total equivalent units= 80,900 tons

Explanation:

Giving the following information:

During October, 77,000 tons were completed. The ending work in process inventory on October 31 was 3,900 tons (40% complete).

Because the direct material is added at the beginning of the process, we should not take into account the beginning inventory. It was recognized the previous month.

For direct material, each ton is completed at 100%.

Units completed= 77,000*1 = 77,000

Ending inventory= 3,900*1= 3,900

Total equivalent units= 80,900 tons

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