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:

 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:

multiple choice

    200 EUP.
    500 EUP.
    1,600 EUP.
    2,100 EUP. Correct
    6,100 EUP.

Explanation

Knowledge Check 01

Equivalent units of production (EUP) for direct materials = Equivalent units completed and transferred out of 500 (or 500 × 100%) + Equivalent units for ending goods in process of 1,600 (or 4,000 × 40%) = 2,100 EUP.

 The cost of the beginning work in process inventory was comprised of $3,000 of direct materials, $10,000 of direct labor, and $10,000 of factory overhead. Costs incurred during the period were comprised of $15,000 of direct materials costs, and $100,000 of conversion costs. The equivalent units of production (EUP) for the period were 9,000 for direct materials and 6,000 for conversion. The costs per EUP were:

multiple choice

    $0.33 per EUP for direct materials and $3.34 per EUP for conversion.
    $1.67 per EUP for direct materials and $9.43 per EUP for conversion.
    $1.10 per EUP.
    $2.00 per EUP for direct materials and $20.00 per EUP for conversion. Correct

Explanation

Knowledge Check 01

Cost per EUP for direct materials = (Direct materials cost in beginning work in process inventory of $3,000 + Direct materials cost incurred of $15,000) ÷ 9,000 EUP = $2.00 per EUP.

Cost per EUP for conversion = (Direct labor cost in beginning work in process inventory of $10,000 + Factory overhead cost in beginning work in process inventory of $10,000 + Conversion cost incurred of $100,000) ÷ 6,000 EUP = $20.00 per EUP.

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