Question

The June 1 work in process inventory consisted of 5,000 units with $16,000 in materials cost and $12,000 in conversion cost. The June 1 work in process inventory was 100% complete with respect to materials and 50% complete with respect to conversion. During June, 37,500 units were started into production. The June 30 work in process inventory consisted of 8,000 units that were 100% complete with respect to materials and 40% complete with respect to conversion. 3. How many units were completed and transferred to finished goods during the period?

Answer 1

The units completed and transferred to finished goods during the period were:

= 34,500 units.

Step-by-step explanation:

a) Data and Calculations:

Units Materials Cost Conversion Cost Total

Beginning work in process 5,000 $16,000 $12,000 $28,000

Degree of completion of WIP 100% 50%

Units started 37,500

Units available 42,500 (5,000 + 37,500)

Ending work in process 8,000 100% 40%

Units completed 34,500 (42,500 - 8,000)

Equivalent units using the weighted average method:

Materials Conversion

Units completed and transferred out 34,500 (100%) 34,500 (100%)

Ending work in process at June 30 8,000 (100%) 3,200 (40%)

Total equivalent units 42,500 36,700