Majestic Ltd, Which Uses a Process-Costing System, Adds Material at the Beginning

question 17

Multiple Choice

Majestic ltd, which uses a process-costing system, adds material at the beginning of production and incurs conversion costs evenly throughout manufacturing process. The following selected information was taken from the company's accounting records: Total equivalent units of materials: 5,000
Total equivalent units of conversion: 4,400
Units started and completed during the period: 3,500
On the basis of this information, the ending work-in-process inventory's stage of completion with respect to conversion cost is:

• A)40%.
• B)60%.
• C)70%.
• D)80%.
• E)100%.

---

Definitions:

Starch

A carbohydrate consisting of a large number of glucose units, serving as a major energy source from food.

Gallbladder

A small organ located under the liver, which stores and concentrates bile, a digestive enzyme produced by the liver.

Bile

A digestive fluid produced by the liver and stored in the gallbladder that aids in the digestion of fats.

Feces

Waste matter discharged from the bowels after food has been digested; excrement.