Answer :
Answer:
The total equivalent units = $45,000 + $23, 250 = $68, 250
Explanation:
The question is to determine the total equivalent units of production for direct materials as follows:
The total to account for in the month of July = $76,000 tons of sugar
However, only 46,000 tons were completed and transferred
Also, the remaining 31,000 tons were only 75% complete
The equivalent cost is as follows
$45,000 tons completed and transferred = 45,000 tons of sugar x 100% = $45,000
31,000 tones of sugar completed at 75% = 31,000 x 75% = $23,250
The total equivalent units = $45,000 + $23, 250 = $68, 250