Question

Tangarine, Inc., manufactures printers and follows the first-in, first-out (FIFO) method to record inventory. The number of units in beginning work in process is 900 units, which are 60 percent complete. The number of units started in the month of July is 2,400. Compute the total units to account for in the month of July.

a.2,400 units
b.2,880 units
c.2,940 units
d.3,300 units

Answer 1

The total units to account for in the month of July is the sum of the beginning work in process units (900 units) plus the units started in July (2,400 units), resulting in 3,300 units. This calculation is for Tangarine, Inc., which uses the FIFO inventory method.Therefore the correct answer is d. 3,300 units.

Step-by-step explanation:

To compute the total units to account for in the month of July for Tangarine, Inc., which manufactures printers and follows the FIFO method of recording inventory, you must consider both the beginning work in process and the units started during the month. The company had 900 units in beginning work in process, which are 60 percent complete, and they started an additional 2,400 units in July.

To calculate the total units to account for, add the number of units started to the number of units in the beginning work in process inventory since they need to be completed this month:

• Number of units in beginning work in process: 900 units
• + Number of units started in July: 2,400 units

This gives us a total of 3,300 units to account for in the month of July.