If conversion costs are added evenly throughout the production process, and the units have made it 50% of the way through the production process, then the percentage completion for conversion costs is
A)0%.
B)50%.
C)100%.
D)none of the above.

Question

Quizplus · Accepted Answer

Since conversion costs are added evenly throughout the production process, it means that the costs are incurred evenly as the units progress through the stages of production. Therefore, if the units have made it 50% of the way through the production process, it means that they have incurred 50% of the total conversion costs. Thus, the percentage completion for conversion costs is 50%.

If Conversion Costs Are Added Evenly Throughout the Production Process