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A process requires the input of a single raw material at the start of the process. There are no process losses. 10,000 units of the material were input to the process in a period. At the end of the period. processing was only 75% complete on 800 units of the material. There was no work-in-progress at the beginning of the period.
What were the equivalent units of production?
(A) Raw material are 9400 and Conversion costs are 9400
(B) Raw material are 9800 and Conversion costs are 9800
(C) Raw material are 10000 and Conversion costs are 9400
(D) Raw material are 10000 and Conversion costs are 9800Material: all put in at once at the start so the degree of completion is not relevant. Here, 10,000 units were input.
So the potentially correct answers have been narrowed to (C) and (D).
Labour: 10,000 units were input and 800 of those are only partially complete. 9,200 are complete with respect to labour. The 800 units in WiP are 75% complete so this is equivalent to 75% x 800 units wholly complete = 600 units.
Therefore, for labour the equivalent units of production are 9,200 + 600 = 9,800.
Answer = D
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