Select the best answer:

An error was made in the computation of the percentage of completion of the current year's ending work in process inventory. The error resulted in assigning a lower percentage of completion to each component of the inventory than actually was the case. Assume there was no beginning inventory.

What is the effect of this error upon:

a. The computation of total equivalent units?

b. The computation of costs per equivalent unit?

c. Costs assigned to cost of goods transferred out for the period?

Choose one of the four options in the following table

Transcribed Image Text:

(1) a Understate t Overstate C Overstate (2) Understate Understate Overstate (3) Overstate Understate Understate (4) Overstate Overstate Understate