Question: Rainbow, Inc. uses a process costing system. The company has only one processing department. Ending work in process inventory consists of 20,000 units carrying a

Rainbow, Inc. uses a process costing system. The company has only one processing department. Ending work in process inventory consists of 20,000 units carrying a cost of $46,000. These units are 40% complete with respect to materials. The equivalent cost per unit for materials and conversion costs is $2.00 and $3.00, respectively. With regard to conversion costs, what percentage of completion is the ending inventory?

50% 40% 60% 100%

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