Question
Assembly department of Zahra Technologies had 100 units as work in process at the beginning of the month. These units were 50% complete. It has
Assembly department of Zahra Technologies had 100 units as work in process at the beginning of the month. These units were 50% complete. It has 200 units which are 25% complete at the end of the month. During the month, it completed and transferred 500 units. Direct materials are added at the beginning of production. Conversion costs are allocated evenly throughout production. Zahra uses weighted-average process-costing method.
2) The number of equivalent units of work done during the month for direct materials is ________.
A) 600 units
B) 800 units
C) 700 units
D) 500 units
Answer:A
Explanation:A) Equivalent units for direct material = 500 units + 200 units - 100 units = 600 units
*** Could you explain why the Beginning WIP of 100 units is not added to the 500 and 200 units to make 800 units?
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