Question

WIP beginning(February 1)-------------------0 unit

started during February-----------------------400 units
completed and transferred--------------------175units
WIP ending (February 29)-----------------------225 units
DM ending(100% completed)
CC(60% complete)
total cost February==> DM cost added during February(32000)+ CC cost added during February(18600)=50600
required?Summarize flow of physical unit

a) Started: 0 units, Completed and Transferred: 175 units, Ending WIP: 225 units
b) Started: 400 units, Completed and Transferred: 175 units, Ending WIP: 225 units
c) Started: 400 units, Completed and Transferred: 400 units, Ending WIP: 0 units
d) Started: 0 units, Completed and Transferred: 400 units, Ending WIP: 0 units

Answer 1

The correct summary of the physical unit flow for February is starting with 400 units, completing and transferring 175 units, and ending with 225 units in progress.

Step-by-step explanation:

To summarize the flow of physical units in the production process, we need to consider the number of units at each stage. At the start of February, there were no units in progress since WIP beginning is 0 units. During February, 400 units were started. Of these, 175 units were completed and transferred out. By the end of February, there were 225 units still in progress (ending WIP), with the direct materials on these units being 100% complete, and the conversion costs 60% complete.

The correct summary of the physical unit flow for February is:

• Started: 400 units
• Completed and Transferred: 175 units
• Ending WIP: 225 units

The option that represents this flow correctly is option b.