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18) During a period uring a period, 43,200 units were completed and 5200 units were in ending WIP Inventory. Ending WIP was 4

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18) Your answer would be C) 45280 because:

Direct Materials:

A) 43200*100%= 43200 ( These 43200 units are 100% complete hence their equivalent would be for 1 unit, 1 direct material was used that's why we multiplied by 100%)

B)5200*40%= 2080 (These 5200 units have only consumed 40% of direct material till now hence their equivalent would be 1 unit, 0.4 direct material has been used that's why we multiply by 40%)

Total (A+B)= 43200+2080 = 45280 ( Which is answer C)

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