Jackson Company transferred 6,000 units to Finished Goods Inventory during August.On August 1,the company had 400 units on hand (35 percent complete as to both material and conversion costs).On August 31,the company had 750 units (20 percent complete as to material and 30 percent complete as to conversion costs).The number of units started and completed during August was:

Question

Quizplus · Accepted Answer

The number of units started and completed during August can be calculated by taking the total units transferred to Finished Goods Inventory (6,000 units), adding the ending work in process inventory (750 units), and then subtracting the beginning work in process inventory (400 units). However, since the beginning and ending inventories are partially completed, we focus on the units that were both started and completed during the period. Thus, the calculation simplifies to just considering the units transferred to Finished Goods Inventory, as the beginning and ending work in process adjustments are not fully completed units. Therefore, the correct answer is 5,600 units, which represents the units that were both started and completed during August, ignoring the partial completion of other units.

Jackson Company Transferred 6,000 Units to Finished Goods Inventory During