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. Units transferred out from Department A during April were
A)390,000.
B)400,000.
C)410,000.
D)490,000.

Question

Quizplus · Accepted Answer

To find the units transferred out, we need to find the number of units completed in Department A during April.

Units started in the process = 400,000 
Beginning inventory = 40,000 
Ending inventory = 50,000

Equivalent units for direct materials = 400,000 
Equivalent units for conversion costs = (40,000 x 40%) + (350,000 x 100%) + (50,000 x 40%) = 166,000

Total equivalent units = 400,000 + 166,000 = 566,000

Units completed during April = 566,000 - 50,000 = 516,000

Units transferred out = units completed - ending inventory = 516,000 - 50,000 = 466,000

Therefore, the answer is A) 390,000.

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