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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