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A manufacturing company has a production where one-half of the materials are added at the beginning of Process 1. Conversion costs are 20% in Process 1. If 600 units are started, the EUP with respect to materials are

Answer :

Abiolataiwo2015go

If 600 units are started, the EUP with respect to materials are: 120 units.

EUP with respect to materials

Using this formula

Equivalent units of production (EUP)= Conversion costs× Beginning units

Where:

Conversion costs=20%

Beginning units=600 units

Let plug in the formula

Equivalent units of production (EUP)=20%×600 units

Equivalent units of production (EUP)=120 units

Inconclusion  if 600 units are started, the EUP with respect to materials are: 120 units.

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