During the month of May,Gonzalez 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 follows:

Number of shirts started = Shirts transferred to Finished Goods + Shirts in ending work-in-process - Shirts in beginning work-in-process
Number of shirts started = 140,000 + 30,000 - 0 (since there was no beginning work-in-process)
Number of shirts started = 170,000

Therefore, the best choice is D) 170,000.

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