Warren Industries uses a process-costing system for its single product, which is manufactured from Material X and Material Y. X and Y are introduced to the product as follows: Material X: Added at the beginning of manufacturing Material Y: Added at the 75% stage of completion The company started and completed 77,000 units during the period, and had an ending work-in-process inventory amounting to 16,700 units, 15% complete. Which of the following choices correctly expresses the total equivalent units of production for Material X and Material Y? Material X Material Y A. 89,525 79,505 B. 89,525 89,525 C. 93,700 77,000 D. 93,700 79,505 E. 93,700 89,525

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TomShelby TomShelby · Answer 1 · 2019-12-13T00:55:04+01:00

Answer:

C. 93,700 77,000

Explanation:

start and complete 77,000

ending work in process 16,700 at 15%

Total units worked during the period: 77,000 + 16,700 = 93,700

For materials X we will count all untis worked during the period as all material X is added at the beginning

For Material Y we count the started and completed untis as the ending units are not above the 75% threshold

Thereforethe correct answer is C 93,700 equialent untis for Material X and 77,000 units of material Y