Question

Assembly department of Zahra Technologies had 100100 units as work in process at the beginning of...

Assembly department of Zahra Technologies had

100100

units as work in process at the beginning of the month. These units were

5555​%

complete. It has

300300

units which are

3030​%

complete at the end of the month. During the​ month, it completed and transferred

500500

units. Direct materials are added at the beginning of production. Conversion costs are allocated evenly throughout production. Zahra uses

weightedminus−average

processminus−costing

method. What is the total equivalent units in ending inventory for assignment of direct materials​ cost?

Business   Accounting   
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Answer #1
  • Requirement:

What is the total equivalent units in ending inventory for assignment of direct materials​ cost?

--Question states that materials are added at the beginning of production. Hence, ending inventory should be 100% complete with respect to material.

--Working

EUP - Weighted Average Method

Units

% Material

EUP Materials

% Conversion

EUP - Conversion

Units TRANSFERRED

500

100%

500

100%

500

Units of ENDING WIP

300

100%

300

30%

90

Equivalent Units of Production

800

590

  • Answer: Total Equivalent units in Ending Inventory for assignment of direct material cost = 300 units [300 x 100%]
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