Figure 6-6
Mannassass Company manufactures chairs. The following information was given for the company:
Materials in the ending inventory were 100 percent complete and conversion in the ending inventory was 20 percent complete.
-The two methods used to determine equivalent units of production are

Question

Figure 6-6
Mannassass Company manufactures chairs. The following information was given for the company:
  Materials in the ending inventory were 100 percent complete and conversion in the ending inventory was 20 percent complete.
-The two methods used to determine equivalent units of production are

Quizplus · Accepted Answer

The information given suggests that the weighted average method should be used to determine equivalent units of production since it is not specified that the inventory is being managed on a specific identification or first-in, first-out (FIFO) basis. Additionally, the fact that conversion in the ending inventory was only 20 percent complete suggests that the weighted average method should be used because it takes into account the degree of completion of inventory units. Therefore, the best choice is to use the weighted average method only.

Figure 6-6 Mannassass Company Manufactures Chairs. the Following Information Was Given for Given