Unit Manufacturing Company had no work in process at the beginning of a month. At the end of the month, 500 units were still in process which were 60% complete. Equivalent production for the month was 7,160 units. How many units were transferred out of production to finished goods during the month?

Question

Quizplus · Accepted Answer

Equivalent production = Units completed and transferred out + (Units in process x % complete)

Equivalent production = X + (500 x 0.60)

Equivalent production = X + 300

X = Equivalent production - 300

X = 7,160 - 300

X = 6,860 units

Therefore, the number of units transferred out of production to finished goods during the month was:

Units transferred out = Equivalent production - Units in process at the end of the month

Units transferred out = 7,160 - 500

Units transferred out = 6,660 units.

Therefore, the correct answer is (C) 6,860 units.

Unit Manufacturing Company Had No Work in Process at the Beginning