The existence of ending work in process inventory necessitates how much of the total manufacturing cost should be assigned to units still in ending WIP inventory, and how much of the cost should be assigned to units completed during the period.

Question

Quizplus · Accepted Answer

This statement is true. Assigning costs to ending work in process inventory depends on the percentage of completion and the total manufacturing cost. Conversely, assigning costs to units completed during the period depends on the total manufacturing cost and the number of units completed.

The Existence of Ending Work in Process Inventory Necessitates How