Savage Clothing had 40,000 shirts in process at May 31 (50% converted). All direct materials are added at the beginning of the production process. During the month, 140,000 shirts were transferred to Finished Goods Inventory. There was no beginning inventory. were started during May.

Question

Quizplus · Accepted Answer

The 40,000 shirts in process at May 31 were 50% converted, meaning they were started in May. Since 140,000 shirts were transferred to Finished Goods, and there was no beginning inventory, the total shirts started during May would be the sum of shirts transferred and the shirts still in process, which is 140,000 + 40,000 = 180,000 shirts.

Savage Clothing Had 40,000 Shirts in Process at May 31