Ending WIP Inventory Has 100 Units That Are 70% Complete

question 62

Multiple Choice

Ending WIP Inventory has 100 units that are 70% complete for direct materials and 20% complete for conversion costs. For calculating costs per equivalent unit, which of the following statements is true?

• A)The denominator would include 100 units for both.
• B)The denominator would include 70 units for direct materials and 20 for conversion.
• C)The denominator would include 20 units for direct materials and 80 for conversion.
• D)You cannot determine what constitutes the denominator.

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Definitions:

Human Diseases

Health conditions or disorders found in humans, often caused by pathogens, genetic factors, or environmental influences.

Mitosis

A type of cell division resulting in two daughter cells each having the same number and kind of chromosomes as the parent nucleus.

Prokaryotes

Microorganisms characterized by the absence of a distinct nucleus, including bacteria and archaea.

Telomeres

Protective cap-like structures at the ends of chromosomes that prevent the loss of genetic information during cell division.