Materials Are Added at the Start of the Process in McKay

Multiple Choice

Materials are added at the start of the process in McKay Company's blending department, the first stage of the production cycle. The following information is available for the month of July: Under McKay's cost accounting system, the costs incurred on the lost units are absorbed by the remaining good units. Using the average cost method, what are the equivalent units for the materials unit cost calculation?

A) 210,000
B) 195,000
C) 250,000
D) 235,000