Birch Enterprises uses a process costing system. The company has only one proces

Question

Birch Enterprises uses a process costing system. The company has only one processing department. At the end of the period, work in process inventory consists of 10,000 units that have a total cost of 22.550. The cost per equivalent unit is $2.00 for direct materials and $3.00 for conversion costs. With respect to direct materials, the units in ending work in process inventory are 70% complete. With respect to conversion costs, the units in ending work in process inventory are: 28.5% complete. 045% complete. 53% complete. 70% complete None of the above

Explanation / Answer

Correct answer is 28.5%

Ending inventory Direct material Conversion cost Total Number of units 10000 10000 Cost per equivalent unit 2 3 % of completion 70% 28.5% (8550/30000) Total cost 14000 8550 22550

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