During the month of May,Orton Clothing transferred 140,000 shirts to Finished Goods Inventory.There was no beginning work-in-process inventory.The company had 30,000 shirts in process at May 31 and the shirts were 50 percent complete with respect to conversion costs.All direct materials are added at the beginning of the production process.How many shirts were started during May?

Question

Quizplus · Accepted Answer

The number of shirts started during May can be calculated as follow:

Shirts transferred to finished goods = Shirts started + Ending work in process - Beginning work in process

Therefore:
140,000 = Shirts started + 30,000 x 50% - 0

140,000 = Shirts started + 15,000

Shirts started = 140,000 - 15,000

Shirts started = 125,000

Therefore, the best choice is D) 170,000 as it is not an option in the choices given.

During the Month of May,Orton Clothing Transferred 140,000 Shirts to Finished