An error was made by ROC Company in computing the percentage of completion of the current year's ending WIP Inventory. The error resulted in the assignment of a lower percentage of completion to each component of the inventory than actually was the case. There was no beginning WIP Inventory. What is the effect of this error on (1) cost assigned to cost of goods completed for the period and (2) the computation of costs per equivalent unit?

a. Understated Overstated

b. Overstated Understated

c. are both Overstated

Answer rating: 100% (QA)

a Understated Overstated The lower completion means less inventor... View the full answer