The Rolling Department of Keystone Steel Company had 400 tons in beginning work in process inventory (20% complete)

The Rolling Department of Keystone Steel Company had 400 tons in beginning work in process inventory (20% complete). During the period, 7,900 tons were completed. The ending work in process inventory was 1,000 tons (30% complete). What are the total equivalent units for direct materials if materials are added at the beginning of the process?


Answer:


Percent 
Total Materials Equivalent 
Whole  Added In  Units for 
Units  Period  Materials 
Inventory in process, beginning of period……………… 400 0% 0 
Started and completed during the period……………… 7,500* 100% 7,500 
Transferred out of Rolling (completed)…………………  7,900 7,500 
Inventory in process, end of period………………………  1,000 100% 1,000 
Total units to be assigned costs…………………………  8,900 8,500 
* 7,900 – 400 



The Filling Department of Savannah Lotion Company had 3,000 ounces in beginning work in process inventory (60% complete). During the period, 40,400 ounces were completed. The ending work in process inventory was 600 ounces (25% complete). What are the total equivalent units for direct materials if materials are added at the beginning of the process?


Answer:


Percent
Total Materials Equivalent
Whole  Added In  Units for
Units  Period  Materials
Inventory in process, beginning of period……………… 3,000 0% 0
Started and completed during the period……………… 37,400* 100% 37,400
Transferred out of Filling (completed)…………………  40,400 37,400
Inventory in process, end of period………………………    600 100%   600
Total units to be assigned costs…………………………  41,000 38,000
* 40,400 – 3,000