Use the information below to answer the following questions:
The following information is provided by Zander Corporation:

The units in ending WIP Inventory were 80% complete for materials and 45% complete for conversion costs.
-What are the total equivalent units for direct materials at Zander Corporation?

Question

Use the information below to answer the following questions:
The following information is provided by Zander Corporation:
  
The units in ending WIP Inventory were 80% complete for materials and 45% complete for conversion costs.
-What are the total equivalent units for direct materials at Zander Corporation?

Quizplus · Accepted Answer

The total equivalent units for direct materials can be calculated as follows:
Units in ending WIP Inventory (80% complete) + Units started and completed during the period = Total equivalent units for direct materials
80% of 10,000 units = 8,000 units
Units started and completed = 5,000 units
Total equivalent units for direct materials = 8,000 units + 5,000 units = 13,000 units. Thus, the correct answer is D.

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