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Sovereign Sofa Manufacturing has completed its monthly inventory count for recliners and recorded the following information for ending inventory: 800 units 100 percent complete, 200

Sovereign Sofa Manufacturing has completed its monthly inventory count for recliners and recorded the following information for ending inventory: 800 units 100 percent complete, 200 units 70 percent complete, and 150 units 30 percent complete. The company uses a process costing system to determine unit cost. Why would unit cost be inaccurate if 1,150 units were used to determine unit cost?

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