The information below was obtained from the records of the first processing department of California Corporation for the month of July. The company uses the weighted-average method in its process costing system.   units percent completed: Labor and overhead work in process inventory, July 1 20,000 40% started during the month 70,000   completed during the month  80,000   Work in process inventory, July 31 ? 25% All materials are added at the beginning of the manufacturing process. The equivalent units for material for the month is: 70,000   90,000   80,000   82,500

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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The information below was obtained from the records of the first processing department of California Corporation for the month of July. The company uses the weighted-average method in its process costing system.

  units

percent completed: Labor and overhead

work in process inventory, July 1 20,000 40%
started during the month 70,000  
completed during the month  80,000  
Work in process inventory, July 31 ? 25%

All materials are added at the beginning of the manufacturing process.

The equivalent units for material for the month is:

70,000
 
90,000
 
80,000
 
82,500
Expert Solution
Step 1

Formula:

Equivalent units for material = Units transferred + Ending work in process

Sum of both units transferred and ending work in process units derives the equivalent units for material

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