Problem:
Stanley Company adds materials at the beginning of the process in Department M. Data concerning the materials used in the March production follows:
|
Units
|
|
Work in process at March 1
|
15,000
|
|
Started during March
|
38,000
|
|
Completed and transferred to next department during March
|
37,000
|
|
Normal spoilage incurred
|
2,000
|
|
Work in process at March 31
|
14,000
|
Required
Question: Using the average cost method, the equivalent units for the materials unit cost calculation are:
- 38,000.
- 51,000.
- 55,000.
- 37,000.
Note: Be sure to show how you arrived at your answer.