Asked by Ashley Melton on May 12, 2024
Verified
Corsi Company had the following department data: Physical Units ‾ Work in process, beginning −0− Completed and transferred out 90,000 Work in process, ending 7,000\begin{array} { l c } & \underline{ \text { Physical Units } } \\\text { Work in process, beginning } &-0-\\\text { Completed and transferred out } & 90,000 \\\text { Work in process, ending } & 7,000\end{array} Work in process, beginning Completed and transferred out Work in process, ending Physical Units −0−90,0007,000 Materials are added at the beginning of the process. What is the total number of equivalent units for materials during the period?
A) 90000.
B) 9000.
C) 97000.
D) 83000.
Equivalent Units
A measure used in cost accounting to express the amount of work done by manufacturers in terms of fully completed units, accounting for partially completed goods as well.
Physical Units
A measure of quantity in terms of countable items or units, often used in production and inventory contexts.
- Acquire insight into the concept of equivalent units in production as it applies to process costing.
- Ascertain equivalent measurements for materials and conversion charges.
- Appreciate the relevance of the phase during which materials are inserted in the fabrication process.
Verified Answer
BR
Brianna RatliffMay 16, 2024
Final Answer :
C
Explanation :
Since materials are added at the beginning of the process, the units started and completed during the period are equivalent units for materials. Thus, the equivalent units for materials would be 90000 (units started) + 7000 (units in process at the end of the period) = 97000.
Learning Objectives
- Acquire insight into the concept of equivalent units in production as it applies to process costing.
- Ascertain equivalent measurements for materials and conversion charges.
- Appreciate the relevance of the phase during which materials are inserted in the fabrication process.
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