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Aglow Company uses a process-cost system for its single product. Material A is a

ID: 2427241 • Letter: A

Question

Aglow Company uses a process-cost system for its single product. Material A is added at the beginning of the process; in contrast, material B is added when the units are 50% complete. The firm's ending work-in-process inventory consists of 4,000 units that are 75% complete. Which of the following correctly expresses the equivalent units of production with respect to materials A and B in the ending work-in-process inventory?

A, 3,000; B, 0.

A, 3,000; B, 3,000.

A, 4,000; B, 0.

A, 4,000; B, 4,000.

A, 4,000; B, 3,000.

Explanation / Answer

the equivalent units of production with respect to materials A and B in the ending work-in-process inventory=

A, 4,000; B, 3,000.