Mortensen Industries, which uses a process-costing system, adds material at the beginning of production and incurs conversion cost evenly throughout manufacturing.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 is:

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The ending work-in-process inventory's stage of completion for conversion costs is calculated by dividing the equivalent units of conversion by the total units in process. The total units in process are the units started and completed (3,500) plus the ending work-in-process inventory (5,000 - 3,500 = 1,500). The equivalent units of conversion are 4,400, so the stage of completion is (4,400 - 3,500) / 1,500 = 60%.

Mortensen Industries, Which Uses a Process-Costing System, Adds Material at the Beginning