Prochem manufactures aspirin in a process operation

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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.

Reference no: EM13909722

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