Question

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:

Answer 1

Answer:

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.