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KAP Company had the following department information about physical units and percentage of completion:
Physical Units
Work in process, May 1 (60%) 60,000
Completed and transferred out 180,000
Work in process, May 31 (40%) 50,000
If materials are added at the beginning of the production process, what is the total number of equivalent units for materials during May? (Points : 2)

a. 224,000
b. 230,000
c. 240,000
d. 290,000

Respuesta :

TomShelby

Answer:

b. 230,000

Explanation:

As materials are added at the beginning of the production process we simply have to count like physical units to arrive to equivalent untis for materials:

complete and transferred   180,000

ending inventory                  50,000  

          Equivalent units        230,000

Missing information KAP Company uses weighted average method for processing costing thus, it does not destinction betwene started and started and compelte when solveing for equivalent units

It only differenciate the ending WIP to evaluate

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