Final answer:
Beta's sunflower oil production started 156,000 units in the month of May by using the provided information on units in process at both the beginning and end of May and units completed and transferred out.
Step-by-step explanation:
To determine the number of units started in the month of May for Beta's sunflower oil production, we will use the following production data provided:
- Units in process, May 1 (70% complete with respect to conversion costs): 25,000 units
- Units completed and transferred out during May: 140,000 units
- Units in process, May 31 (40% complete with respect to conversion costs): 40,000 units
We need to calculate the equivalent units of production for the work in process at the beginning of May and the work in process at the end of May. Then, we can infer the number of units started during May by combining these figures with the units completed and transferred out.
Here is the step-by-step calculation:
- Calculate equivalent units at the beginning of May: 25,000 units x 70% = 17,500 equivalent units.
- Calculate equivalent units at the end of May: 40,000 units x 40% = 16,000 equivalent units.
- Add the equivalent units in process at the beginning of May to the units completed: 17,500 + 140,000 = 157,500 units.
- Finally, the total equivalent units for May, combining both in process at the beginning and units completed, must equal the units completed plus the equivalent units in process at the end of May: Total equivalent units for May = 157,500 + 16,000 = 173,500 units.
- Therefore, the number of units started during May is the total equivalent units for May minus the units in process at the beginning of May: 173,500 - 17,500 = 156,000 units started in May.
Thus, Beta's sunflower oil production started 156,000 units in the month of May.