Question

Assume that all direct materials are added at the beginning of the manufacturing process. If 72,100 units are completed and transferred in respect to direct materials, however, the process is 90% complete in respect to conversion costs, calculate the number of equivalent units in respect to direct materials. Select one: a. 64,890 b. 72,100

Answer 1

Answer:

The correct option is B,72,100

Explanation:

It is very clear that the manufacturing process is complete in respect of direct materials i.e 100% complete.

Hence, the equivalent units in terms of direct material cost is 100% multiplied by the number of units of direct materials added at the beginning of the manufacturing process.

Without mincing words, option B ,72,100 units of direct materials, is absolutely correct