Assembly department of Zahra Technologies had 100 units as work in process at the beginning of the month. These units were 45% complete. It has 200 units which are 20% complete at the end of the month. During the month, it completed and transferred 500 units. Direct materials are added at the beginning of production. Conversion costs are allocated evenly throughout production. Zahra uses weighted-average process-costing method. What is the total equivalent units in ending inventory for assignment of direct materials cost?
A) 100 units
B) 40 units
C) 160 units
D) 200 units

Question

Quizplus · Accepted Answer

As direct materials are added at the beginning of production, equivalent units = 200 units

Assembly Department of Zahra Technologies Had 100 Units as Work