During a period, 40,200 units were completed and 3,200 units were in ending WIP Inventory. Ending WIP was 95% complete for direct materials and 50% complete for conversion costs. What are the equivalent units for direct materials?

The equivalent units for direct materials are 43,240.

Explanation:

Given:

During a period, 40,200 units were completed and 3,200 units were in ending WIP Inventory. Ending WIP was 95% complete for direct materials.

Now, to find the equivalent units for direct materials.

Complete units = 40,200.

Ending WIP (work in progress) Inventory = 3,200.

As, ending WIP was 95% complete for direct materials.

Thus, ending WIP Inventory = 95% of 3,200.

=

Now, to get the equivalent units for direct materials by adding complete units and ending WIP Inventory:

Therefore, the equivalent units for direct materials are 43,240.

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