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Business · Accounting
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Kendra Corporation uses a process-cost accounting system. The company adds direct materials and direct labor at the start of its production process; overhead cost is incurred evenly throughout manufacturing. The firm has no beginning work-in-process inventory; its ending work in process is 40% complete. Which of the following sets of percentages would be used to calculate the correct number of equivalent units in the ending work-in-process inventory?

A. Materials, 100%; labor, 100%; overhead cost, 40%.

B. Materials, 100%; labor, 100%; overhead cost, 100%.

C. Materials, 100%; labor 40%; overhead cost, 40%.

D. Materials, 40%; labor, 40%; overhead cost, 60%.

E. Materials, 40%; labor, 40%; overhead cost, 100%.

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