Kendra Corporation Uses a Process-Cost Accounting System

question 22

Multiple Choice

Kendra Corporation uses a process-cost accounting system. The company adds direct materials and direct labor at the start of its production process; overhead cost is incurred evenly throughout manufacturing. The firm has no beginning work-in-process inventory; its ending work in process is 40% complete. Which of the following sets of percentages would be used to calculate the correct number of equivalent units in the ending work-in-process inventory?

• A) Materials, 100%; labor, 100%; overhead cost, 40%.
• B) Materials, 100%; labor, 100%; overhead cost, 100%.
• C) Materials, 100%; labor 40%; overhead cost, 40%.
• D) Materials, 40%; labor, 40%; overhead cost, 60%.
• E) Materials, 40%; labor, 40%; overhead cost, 100%.

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Definitions:

Water

A colorless, tasteless, and odorless substance that is essential for all forms of life and is the most widely used solvent.

Dimethyl Ether

An organic compound with the formula CH3OCH3, used as an aerosol propellant and as a reagent in organic synthesis.

3-Methoxyfuran

A furan derivative with a methoxy group (-OCH3) attached to the 3-position of the furan ring.

Dioxanes

A class of organic compounds with a six-membered ring consisting of four carbon atoms and two oxygen atoms at opposite positions.