Total direct materials equals $90,000, and there is no beginning WIP inventory. Units completed are 18,000 with no ending work in process inventory. The direct material cost per unit is $5.00.

Question

Quizplus · Accepted Answer

To find the total direct materials cost, we need to multiply the direct material cost per unit by the total units completed. 
Direct material cost per unit = $5.00 
Total units completed = 18,000 
Total direct materials cost = $5.00 x 18,000 = $90,000 
Therefore, the statement is true.

Total Direct Materials Equals $90,000, and There Is No Beginning