Assume That 6,000 Units Were in Beginning WIP Inventory, 36,000

question 17

Multiple Choice

Assume that 6,000 units were in beginning WIP inventory, 36,000 were started, 32,000 were completed, and 10,000 were in ending WIP inventory. Direct materials are added at the beginning of the process. What are the total equivalent units for direct materials?

• A) 38,000
• B) 36,000
• C) 46,000
• D) 42,000

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Definitions:

Raw Materials Purchases

refer to the acquisition of the basic inputs required to manufacture products; these materials have yet to be processed or used in production.

Raw Materials Available

Raw materials available refer to all the materials that are in stock and ready to be used in the production process at a given time.

Total Manufacturing Costs

The aggregate cost incurred in the production of goods, including raw materials, labor, and overhead expenses.

Direct Labor

The cost of labor that is directly involved in the production of goods or services.