Braden Corp uses a process costing system.Beginning inventory for January consisted of 1,300 units that were 60% completed.13,000 units were started into the process during January.During January,13,650 units were completed.How many units were in ending inventory on January 31?
A)1,950
B)1,300
C)650
D)130

Question

Quizplus · Accepted Answer

To find out how many units were in ending inventory, we need to first calculate the equivalent units for the units that were started in January and the beginning inventory units.

For the beginning inventory units:
1,300 x 60% = 780 equivalent units

For the units started in January:
13,000 x 100% = 13,000 equivalent units

Total equivalent units for January = 780 + 13,000 = 13,780

Now we need to subtract the units that were completed during the month from the total equivalent units to find the ending inventory:

13,780 - 13,650 = 130 units in ending inventory

Therefore, the best choice is (C) 650.

Braden Corp Uses a Process Costing System