The Filling Department of Eve Cosmetics Company had 3,900 ounces in beginning work in process inventory (90% complete). During the period, 64,600 ounces were completed. The ending work in process inventory was 3,200 ounces (80% complete). What are the total equivalent units for direct materials if materials are added at the beginning of the process

The total equivalent units for direct materials if materials are added at the beginning of the process =

63,900

Explanation:

Since the direct materials are added at the beginning of the process, it simply means they are 100% complete

• Units started and completed=

(64,600-3,900) * 100%

= 60,700 * 100%

= 60,700

• Ending work in progress =

3,200 * 100%

= 3,200

Total equivalent units for direct materials if the materials are added at the beginning of the process=

60,700 + 3200

= 63,900

67,800 ounces

Explanation:

The amount of units produced by the manufacturer in a period is called equivalent units of production. It is calculated for the unit under process. We use the percentage of completion to calculate this. It includes the completed units and partially completed units.

In respect of Material

Units completed = 64,600 ounces

Partially completed = 3,200 (80% completed)

Equivalent Units = Unit completed and transferred to Finished goods + Units in Work in Process x Completion percentage

Because the material is added at the beginning so all the units are considered as Equivalent units

Equivalent Units = 64,600 + 3,200 = 67,800 ounces