Tripper Corp.uses a FIFO process costing system.Beginning inventory for January consisted of 1,000 units that were 60% completed.10,000 units were started into the process during January.During January,9,500 units were started and completed.How many units were in ending inventory on January 31?
A)1,500
B)1,000
C)500
D)100

Question

Quizplus · Accepted Answer

Units started and completed = 9,500
Units in beginning inventory = 1,000 × 60% = 600
Total units accounted for = 9,500 + 600 = 10,100
Units in ending inventory = 10,000 - 10,100 = -100
Since a negative answer is not possible, there must have been an error in the calculation. The correct answer is that there were 500 units in ending inventory.