Gajewski began operations on January 1 of the current year.The company uses a process-costing system,and conversion cost is incurred evenly throughout manufacturing.By January 31,the firm had completed 56,000 units.Which of the following statements could be true about the ending work-in-process inventory if equivalent units for conversion cost totaled 59,000 units?
A)There is no ending work-in-process inventory.
B)The ending work-in-process inventory totaled 3,000 physical units.
C)The ending work-in-process inventory of 10,000 physical units was 30% complete.
D)The ending work-in-process inventory of 20,000 physical units was 85% complete.
E)More than one of the above could be truE.

Question

Quizplus · Accepted Answer

The ending work-in-process inventory of 10,000 physical units being 30% complete would result in 3,000 equivalent units (10,000 units * 30% = 3,000 equivalent units), which when added to the 56,000 completed units, totals the 59,000 equivalent units for conversion cost.

Gajewski Began Operations on January 1 of the Current Year