Majesco, Which Uses a Process-Costing System, Adds Material at the Beginning

question 38

Multiple Choice

Majesco, which uses a process-costing system, adds material at the beginning of production and incurs conversion cost evenly throughout manufacturing. The following selected information was taken from the company's accounting records:
Total equivalent units of materials: 5,000
Total equivalent units of conversion: 4,400
Units started and completed during the period: 3,500
On the basis of this information, the ending work-in-process inventory's stage of completion is:

• A) 40%.
• B) 60%.
• C) 70%.
• D) 80%.
• E) some other percentage not listed.

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Definitions:

Governmental Funds

Categories of funds used by governments to account for financial resources devoted to specific purposes other than business-type activities.

Current Financial Resources

Refers to the liquid assets available to a company for use in its immediate or short-term operations, including cash and other assets that can be quickly converted into cash.

Government-Wide Financial Statements

Comprehensive financial reports that encompass all the financial activities of a government entity and its component units.

GAAP-Based Financial Statements

Financial statements prepared according to Generally Accepted Accounting Principles, which serve as the standard framework of guidelines for financial accounting.