Question

Assembly department of Zahra Technologies had 200 units as work in process at the beginning of...

Assembly department of Zahra Technologies had 200 units as work in process at the beginning of the month. These units were​ 45% complete. It has 300 units which are​ 25% complete at the end of the month. During the​ month, it completed and transferred 600 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 number of equivalent units of work done during the month with regards to direct​ materials?

a. 900 units

B.

​1,100 units

C.

700 units

D.

600 units

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Answer #1

Answer:

Option a: 900 units

Explanation:

Particulars Output Material Conversion cost
% Units % Units
Started and completed      600 100% 600 100% 600
Ending Inventory      300 100% 300 25%     75
Total      900 900 675

Hence, option 'a' is correct and rest all are incorrect.

In case of any doubt or clarification, feel free to come back via comments.

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