Department E had 4,000 units in Work in Process that were 40% completed at the beginning of the period at a cost of $12,500. 14,000 units of direct materials were added during the period at a cost of $28,700. 15,000 units were completed during the period, and 3,000 units were 75% completed at the end of the period. All materials are added at the beginning of the process. Direct labor was $32,450 and factory overhead was $18,710.
The number of equivalent units of production for the period for materials if the average cost method is used to cost inventories was:
Answer
15,650
18,000
17,250
17,700
15650
15650. Dont listen to cha.
To determine the number of equivalent units of production for materials using the average cost method, we need to consider the units completed during the period and the units in ending Work in Process inventory.
First, let's calculate the equivalent units of production for the units completed during the period:
Number of units completed = 15,000
Next, let's calculate the equivalent units of production for the units in ending Work in Process inventory:
Number of units in ending Work in Process = 3,000
Percentage of completion for ending Work in Process = 75%
To calculate the equivalent units of production for the ending Work in Process, we multiply the number of units in ending Work in Process by the percentage of completion:
Equivalent units of production for ending Work in Process = 3,000 * 75% = 2,250
Now, let's add the equivalent units of production for the completed units and ending Work in Process inventory to get the total equivalent units of production for materials:
Total equivalent units of production for materials = Equivalent units of production for completed units + Equivalent units of production for ending Work in Process
= 15,000 + 2,250
= 17,250
Therefore, the correct answer is 17,250.