Ferrell Glass Company Uses a Process Costing System

Multiple Choice

Ferrell Glass Company uses a process costing system. The company reported a beginning inventory of 18,000 units that were 40% complete with respect to direct materials. During the month, 90,000 units were started and the ending work in process inventory amounted to 12,000 units that were 20% complete with respect to direct materials. What were the equivalent units of production for direct materials?

A) 90,000 units
B) 87,600 units
C) 98,400 units
D) 91,200 units