During the period, the Mixing Department completed 500 units and transferred them out to the Baking Department. At the end of the period, there were 4,000 units that are 40% complete as to direct materials in the Mixing Department. The equivalent units of production for direct materials equal:

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24 June, 13:08

During the period, the Mixing Department completed 500 units and transferred them out to the Baking Department. At the end of the period, there were 4,000 units that are 40% complete as to direct materials in the Mixing Department. The equivalent units of production for direct materials equal:

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Austin Stein · Answer 1

2,100

Explanation:

Equivalent units of production

Units Completion % Units Equivalent

500 x 100% = 500

4,000 x 40% = 1,600

Total Equivalent units of production = 2,100

The 4,000 units yet not finished, must be valued according to its % of completion, multiplying "volume (units quantity) x completion %". Then, add the result to fully completed units.