(Solution) - Red company adds direct materials at the beginning of its -(2025 Original AI-Free Solution)

Paper Details

Red company adds direct materials at the beginning of its production process and adds conversion costs uniformly throughout the process. Given the following information from Red company?s records for July, compute the current period?s equivalent units of production for direct materials and conversion costs:
Units in beginning inventory: 2,000
Units started during the period: 13,000
Units partially completed: 500
Percentage of completion of beginning inventory: 100% for direct
materials; 40% for conversion costs
Percentage of completion of ending work in process inventory: 100%
for direct material; 70% for conversion costs