The Ending Work in Process Inventory in the Mixing Department

question 85

Multiple Choice

The ending Work in Process inventory in the mixing department contains 300 units that are 70% complete with respect to labor costs.How many equivalent units are in the ending inventory?

• A) 300 units.
• B) 140 units.
• C) 70 units.
• D) 210 units.

---

Definitions:

Matching Expenses

An accounting principle that matches expenses with the revenues they generate within the same accounting period.

Revenue Recognition Principle

An accounting principle that dictates how and when revenue is accounted for and reported, emphasizing that income is recognized when earned, regardless of when cash is received.

Reporting Revenue

Reporting revenue involves the recognition and recording of income generated from the sales of goods or services in the financial statements of a corporation.

Deferred Revenue

Income received by a company for goods or services yet to be delivered or performed, recognized as a liability on the balance sheet until earned.