Ending WIP Inventory Has 100 Units That Are 80% Complete

question 177

Multiple Choice

Ending WIP inventory has 100 units that are 80% complete for direct materials and 30% complete for conversion costs.For calculating costs per equivalent unit,which of the following statements is true?

• A)The denominator would include 80 units for direct materials and 30 for conversion.
• B)The denominator would include 100 units for both.
• C)The denominator would include 30 units for direct materials and 70 for conversion.
• D)You cannot determine what constitutes the denominator.

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Definitions:

FAB Closing

A sales technique that emphasizes the Features, Advantages, and Benefits of a product or service during the closing phase of a sales pitch.

Extra-Large

A size category indicating items significantly larger than the standard or medium size.

Classifies Accounts

The process of organizing customer accounts into categories for targeted marketing strategies, sales efforts, or customer service improvement.

Geographic Location

A specific physical place or position on Earth's surface, identified by coordinates of longitude and latitude or a relative description.