If a department that applies process costing starts the reporting period with 100,000 physical units that were 20% complete with respect to direct labor,it must add 80,000 equivalent units of labor to complete them.

Question

Quizplus · Accepted Answer

The table shows the cost data for 80,000 equivalent units of labor, which implies that the department started with 100,000 physical units that were 20% complete with respect to direct labor and needed to add 80,000 equivalent units of labor to complete them.

If a Department That Applies Process Costing Starts the Reporting