Majestic Ltd, Which Uses a Process-Costing System, Adds Material at the Beginning

Majestic ltd, which uses a process-costing system, adds material at the beginning of production and incurs conversion costs evenly throughout manufacturing process. The following selected information was taken from the company's accounting records: Total equivalent units of materials: 5,000
Total equivalent units of conversion: 4,400
Units started and completed during the period: 3,500
On the basis of this information, the ending work-in-process inventory's stage of completion with respect to conversion cost is:

A) 40%.
B) 60%.
C) 70%.
D) 80%.
E) 100%.

Correct Answer:

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