Bildy Corp.uses a process costing system.During January,14,000 units were started,and 18,000 units were completed.On January 31,the inventory consisted of 500 units that were 70% completed.How many units were in beginning inventory on January 1?
A)0
B)500
C)3,500
D)4,500

Question

Quizplus · Accepted Answer

Using the process costing method, the total number of units started during the period is equal to the units completed plus the ending work in process units minus the beginning work in process units. 
Therefore, 
14,000 = 18,000 + 500 - Beginning work in process units
Solving for the beginning work in process units gives:
Beginning work in process units = 4,500. 
Therefore, Choice D is the correct answer.