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Question 18.3: The Bottling Department of Rocky Springs Beverage Company ha...

The Bottling Department of Rocky Springs Beverage Company had 4,000 liters in the beginning work in process inventory (30% complete). During the period, 58,000 liters were completed. The ending work in process inventory was 3,000 liters (60% complete). What are the total equivalent units for direct materials if materials are added at the beginning of the process?

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Total equivalent units for direct materials are 57,000, computed as follows:

Total
Whole
Units		 Percent
Materials
Added
in Period		 Equivalent
Units for
 Direct
Materials
Inventory in process, beginning of period 4,000 0% 0
Started and completed during the period 54,000* 100% 54,000
Transferred out of Bottling (completed) 58,000 _ 54,000
Inventory in process, end of period   3,000 100%   3,000
Total units to be assigned costs

*(58,000 – 4,000)

 \underline{\underline{61,000}} \underline{\underline{57,000}}

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