Total direct materials = $67,500, and there is no beginning WIP inventory. Units completed are 15,000 with no ending work in process inventory. The cost per unit is $4.50.

Question

Quizplus · Accepted Answer

We can calculate the total cost of the units completed by multiplying the number of completed units by the cost per unit:
15,000 x $4.50 = $67,500

This cost matches the total cost of direct materials, which means there is no beginning or ending work in process inventory. Therefore, the statement is true.

Total Direct Materials = $67,500, and There Is No Beginning