If Equivalent Units Are 15000 for Conversion Costs and Units

question 57

Multiple Choice

If equivalent units are 15000 for conversion costs and units transferred out equals 10000 what stage of completion should the ending work in process be for the 20000 units remaining?

• A) 75%.
• B) 25%.
• C) 10%.
• D) 20%.

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Definitions:

Hybrid Costing System

A costing method that combines elements of both job costing and process costing, suitable for industries producing goods with similar but not identical characteristics.

Service Costing System

An accounting approach designed to allocate costs associated with providing a service, often used by companies that primarily offer services instead of products.

Upstream Activity

Activities in the supply chain or production process that occur before the final manufacture or production stage, often involving the extraction or raw material acquisition.

Merchandising Business

A business model that involves purchasing products at wholesale prices and selling them at retail prices to earn a profit.