During March, the production department of a process manufacturing system completed a number of units of a product and transferred them to finished goods. Of the units transferred, 25,000 were in process at the beginning of March and 110,000 were started and completed in March. March's beginning inventory units were 100% complete with respect to materials and 55% complete with respect to labor. At the end of March, 30,000 additional units were in process in the production department and were 100% complete with respect to materials and 30% complete with respect to labor. Compute the number of units transferred to finished goods.
A) 110,000.
B) 135,000.
C) 105,000.
D) 165,000.
E) 144,000.

Question

Quizplus · Accepted Answer

Units transferred to finished goods = Units completed + Beginning WIP - Ending WIP
Units completed = 110,000
Beginning WIP = 25,000 units (100% complete for materials and 55% complete for labor), which is equivalent to 25,000 + 25,000 * 0.55 = 38,750 completed units for materials and 25,000 * 0.55 = 13,750 completed units for labor
Ending WIP = 30,000 units (100% complete for materials and 30% complete for labor), which is equivalent to 30,000 completed units for materials and 30,000 * 0.30 = 9,000 completed units for labor.
Therefore, Units transferred to finished goods = 110,000 + 38,750 + 13,750 - 30,000 - 9,000 = 135,500.
The closest option to this answer is B) 135,000.

During March, the Production Department of a Process Manufacturing System