In the month of June a department had 20000 units in beginning work in process that were 70% complete. During June 90000 units were transferred into production from another department. At the end of June there were 10000 units in ending work in process that were 40% complete. Materials are added at the beginning of the process while conversion costs are incurred uniformly throughout the process. How many units were transferred out of the process in June?
A) 90000 units.
B) 80000 units.
C) 100000 units.
D) 110000 units.

Question

Quizplus · Accepted Answer

To determine the units transferred out, we need to account for the units that were completed and moved out of the process during June. The beginning work in process units (20,000) would have been completed and added to the units that were fully processed during the month (90,000 units transferred into production). The ending work in process units (10,000) are still in process and not transferred out. Therefore, the units transferred out are the total units accounted for minus the ending work in process: 20,000 (completed from beginning WIP) + 90,000 (transferred in and completed) = 110,000 units in total processed, but since 10,000 are still in process, 110,000 - 10,000 = 100,000 units were transferred out.

In the Month of June a Department Had 20000 Units