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:

Caribbean Island

Islands in the Caribbean Sea, noted for their diverse cultures, histories of colonialism, and roles in the African diaspora.

England

A country in Europe that is part of the United Kingdom, known for its rich history, monarchy, and contributions to culture and science.

John Hawkins

A 16th-century English naval commander and slave trader, notable for his role in the early years of the Atlantic slave trade.

African Slaves

African slaves were individuals forcibly taken from Africa and transported primarily across the Atlantic to the Americas to work in bondage, predominantly in the plantation system.