The Taylor Company Uses a Process Costing System -
Equivalent Units for Direct Materials Are
A) 180,000

Multiple Choice

The Taylor Company uses a process costing system. Assume that direct materials are added at the beginning of the period and that direct labor and overhead are added continuously throughout the process. The company uses the average costing method. The following data are available for one of its accounting periods: $\begin{array}{|l|l|l|}\hline & \text { Units } & \\\hline \text { Beginning work in process } & 26,000 & \text { (70 percent complete for conversion costs) } \\\hline \text { Units started } & 180,000 & \\\hline \text { Units transferred out } & 191,000 & \\\hline \text { Ending work in process } & 15,000 & \text { (60 percent complete for conversion costs) } \\\hline & &\end{array}$
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Equivalent units for direct materials are

A) 180,000.
B) 206,000.
C) 176,000.
D) 191,000.