The existence of ending Work In Process Inventory necessitates how much of the total manufacturing cost should be assigned to units still in ending WIP Inventory, and how much of the cost should be assigned to units completed during the period.

Question

Quizplus · Accepted Answer

This is true because a portion of the manufacturing cost is still in the ending WIP Inventory and needs to be allocated accordingly. The cost of completed units can be easily calculated and assigned to them.

The Existence of Ending Work in Process Inventory Necessitates How