Question

ProChem manufactures aspirin in a process operation. Details on production activity follow. Compute the department’s equivalent units of production with respect to direct materials under each of two separate assumptions.
Beginning goods in process . . . . . . . . . 31,500
Goods started . . . . . . . . . . . . . . . . . . . 189,500
Goods completed . . . . . . . . . . . . . . . . 191,500
1. All direct materials are added to products when processing begins.
2. One- half of direct materials is added to products when the process begins and the other half is added when the process is 75% complete as to direct labor. Beginning goods in process is 20% complete as to direct labor, and ending goods in process inventory is 45% complete as to direct labor.



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  • CreatedNovember 29, 2013
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