During April,Department A started 400,000 units of product in a particular production process.The beginning work in process inventory was 40,000 units,and the ending inventory was 50,000 units.Direct materials are introduced at the start of processing,and beginning and ending inventories are considered to be 40 percent complete with respect to conversion costs.Department A uses the FIFO costing method. The number of units started and completed in Department A during April was
A)450,000.
B)350,000.
C)360,000.
D)160,000.

Question

Quizplus · Accepted Answer

To calculate the number of units started and completed in Department A during April, we need to use the following formula:

Units started and completed = Units started - ending inventory + beginning inventory

Units started = 400,000
Ending inventory = 50,000
Beginning inventory = 40,000 * 40% = 16,000

Therefore,

Units started and completed = 400,000 - 50,000 + 16,000 = 366,000

However, since Department A uses the FIFO costing method and beginning inventory is considered 40% complete with respect to conversion costs, we need to adjust the units started and completed by subtracting the equivalent units of beginning inventory.

Equivalent units of beginning inventory = 40,000 * 40% = 16,000

Adjusted units started and completed = Units started and completed - Equivalent units of beginning inventory

Adjusted units started and completed = 366,000 - 16,000 = 350,000

Therefore, the correct answer is B) 350,000.

During April,Department a Started 400,000 Units of Product in a Particular