Question
AAF company is reviewing the behavior of its various activities. AAF is considering various costs under process costing system. For the month of February, one
AAF company is reviewing the behavior of its various activities. AAF is considering various costs under process costing system. For the month of February, one department of the Company had 64,000 equivalent units of production with respect to conversion cost. Work-in-process inventory on February 1 had 7,500 units and was 50 percent complete. During February, 62,500 units were started and 60,000 were completed and transferred to the next department. Assuming the Company uses the weighted average cost method, the ending work-in-process inventory in the department.
a.was 50 percent complete with respect to conversion costs
b.was 40 percent complete with respect to conversion costs
c.consisted of 2,500 units
d.consisted of 7,500 units
e.cannot be calculated with the information given
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