The Morgan Company Uses the Weighted-Average Method in Its Process

Multiple Choice

The Morgan Company uses the weighted-average method in its process costing system.For a particular department,the company had 54,000 equivalent units of production with respect to conversion costs in March.There were 7,500 units in the department's beginning work-in-process inventory,two-thirds complete with respect to conversion costs.During March,52,500 units were started and 50,000 were completed and transferred out of the department.What was the ending work-in-process inventory in the department?

A) Consisted of 5,000 units.
B) Consisted of 2,500 units.
C) 65% complete with respect to conversion costs.
D) 40% complete with respect to conversion costs.EI equiv.units = 54,000 - 50,000 = 4,000 EU therefore 4,000/10,000 = 40% complete