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: 8,000 Total equivalent units of conversion: 7,240 Units started and completed during the period: 6,100 On the basis of this information, the ending work-in-process inventory's stage of completion is:

60%

Explanation:

Calculation for what the ending work-in-process inventory's stage of completion is:

First step is to calculate the Total materials

Total equivalent units of materials + Units started and completed during the period = Total materials or 6,100 + x = 8,000; x = 1,900 (8,100-6,100)

Second step is to calculate Partial units with conversion costs in ending inventory

Using this formula

Partial units with conversion costs in ending inventory= Equivalent units of conversion –

Units started and completed during the period

Let plug in the formula

Partial units with conversion costs in ending inventory= 7,240 – 6,100

Partial units with conversion costs in ending inventory = 1,140 units

Now let calculate the ending work-in-process inventory's stage of completion

Ending work-in-process inventory's stage of completion= 1,140 ÷1,900

Ending work-in-process inventory's stage of completion=0.6*100

Ending work-in-process inventory's stage of completion= 60%

Therefore the ending work-in-process inventory's stage of completion is:60%