Partially completed units in ending work in process are 100 percent complete with regard to their direct materials costs if the direct materials are introduced at the beginning of the process.

Question

Business

Ibrahim Ewing

29 January, 09:22

Partially completed units in ending work in process are 100 percent complete with regard to their direct materials costs if the direct materials are introduced at the beginning of the process.

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Answers (1)

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Hulk · Answer 1

TRUE

Explanation:

As the direct materials are introduced at the beginning of the process the only factors which are not completed are the conversion cost which are: labor cost and manufacturing overhead.

The equivalent units will be calculated using a 100% of completion in raw materials.