A department adds raw materials to a process at the beginning of the process and incurs conversion costs uniformly throughout the process. For the month of January, there were no units in the beginning work in process inventory; 90,000 units were started into production in January; and there were 20,000 units that were 40% complete in the ending work in process inventory at the end of January. What were the equivalent units of production for materials for the month of January?

The concept of **Equivalent Units of Production (EUP)** is used in process costing to determine the number of units that could have been completed given the amount of materials and conversion costs applied during a specific period. The calculation for **equivalent units for materials** is based on the assumption that materials are added at the beginning of the process.

Since all materials are added at the beginning of the process, the equivalent units for materials are determined as follows:

1. **Units Started and Completed**: 
   - 90,000 units were started into production.
   - However, there were 20,000 units in the ending work in process (WIP) that were only 40% complete, so only 70,000 units were fully completed during the period.

2. **Ending Work in Process (WIP)**: 
   - 20,000 units are in the ending WIP.
   - Since materials are added at the beginning, all 20,000 units in the WIP are considered 100% complete with respect to materials.

Now, the total **equivalent units of production for materials** is the sum of:

- The units started and completed: 70,000 units.
- The materials equivalent units in the ending WIP: 20,000 units.

Thus, the **total equivalent units of production for materials** for January =  
\[ 70,000 \, \text{(completed units)} + 20,000 \, \text{(ending WIP units)} = 90,000 \, \text{equivalent units}. \]

### Conclusion:
The equivalent units of production for materials for the month of January is **90,000 units**.

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Would you like more details on this concept or have any other questions?

Here are 5 related questions you might find interesting:
1. How do you calculate equivalent units for conversion costs?
2. What is the difference between equivalent units for materials and conversion costs?
3. How are costs assigned to equivalent units in process costing?
4. What role do beginning and ending inventories play in equivalent unit calculations?
5. How is the percentage of completion calculated for conversion costs in WIP?

**Tip:** In process costing, understanding when materials and conversion costs are incurred is crucial for accurate equivalent unit calculations.

Learn how to calculate the equivalent units of production for materials in process costing for January. In this example, 90,000 units were started, and 20,000 units were 40% complete in ending work in process. This problem covers key concepts in accounting, including equivalent units and work in process calculations. Suitable for high school and college-level accounting students.

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