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

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.

Transcribed Image Text:

Beginning goods in process.. 31.500 Goods started... 189,500 Goods completed 191,500