During July, the Equivalent Full Units of Direct Materials Added

During July, the equivalent full units of direct materials added to the product worked on by Department A amounted to a total of 90,000 applied as follows: beginning inventory, 20,000 units; units started and completed in July, 60,000 units; and ending inventory, 10,000 units. Assuming that the cost of direct materials requisitioned by the department in July was $135,000; the amount of the materials cost to be assigned to the ending inventory would be:

A) $16,875.
B) $54,000.
C) $15,000.
D) $18,000.

Correct Answer:

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