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27 January, 08:21

Alpha Company uses a process cost system. During 2017, Alpha had no beginning work in process inventory. During 2017, Alpha started 700 units. Alpha had 200 units in work in process at the end of 2017. These units were 50% complete with respect to materials. Use this information to determine the equivalent units for direct materials. (Round & enter final answers to nearest whole number of units)

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  1. 27 January, 08:51
    The equivalent units for direct materials is 800 units


    The following information is giving in the question which is shown below:

    1. Starting units = 700 units

    2. Ending Work in progress = 200 units

    3. Material = 50% of Ending WIP

    = 100 units

    By using these information, the equivalent units for direct materials is shown below:

    = Starting units + units of Material

    = 700 + 100

    = 800 units

    Thus, the equivalent units for direct materials is 800 units.
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