Kerner Manufacturing uses a process cost system to manufacture laptop computers. The following information summarizes operations relating to laptop computer model #KJK20 during the quarter ending March 31:

Units

Direct Materials

Work in process inventory, January 1

100

$70,000

Started during the quarter

500

Completed during the quarter

400

Work-in-process inventory, March 31

200

Costs added during the quarter

$750,000

Beginning work in process inventory was 50% complete for direct materials. Ending work in process inventory was 75% complete for direct materials. What were the equivalent units of production with regard to materials for March?

  1. 450
  2. 500
  3. 550
  4. 600