The Pulp Department of Paper Mill, Inc. had 120,000 tons of pulp to account for in July. Of the 120,000 tons, 90,000 tons were completed and transferred to the Screening Department, and the remaining 30,000 tons were 60% complete. The materials required for production are added at the beginning of the process. Conversion costs are added equally throughout the refining process. Calculate the total equivalent units of production for direct materials.     108,000 units     120,000 units     90,000 units     84,000 units

FINANCIAL ACCOUNTING
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Author:Libby
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Chapter1: Financial Statements And Business Decisions
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The Pulp Department of Paper Mill, Inc. had 120,000 tons of pulp to account for in July. Of the 120,000 tons, 90,000 tons were completed and transferred to the Screening Department, and the remaining 30,000 tons were 60% complete. The materials required for production are added at the beginning of the process. Conversion costs are added equally throughout the refining process. Calculate the total equivalent units of production for direct materials.

   

108,000 units

   

120,000 units

   

90,000 units

   

84,000 units

Expert Solution
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Total equivalent units of production for direct materials = (Units completed and transferred x 100%) + (Ending work in process x 100%)

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