Sumter Corporation uses the weighted-average method in its process costing system. The following data pertain to operations in the first processing department for a recent month: How many units were started into production during the month?
A) 68,000 units
B) 84,000 units
C) 72,000 units
D) 56,000 units

Question

Sumter Corporation uses the weighted-average method in its process costing system. The following data pertain to operations in the first processing department for a recent month:  How many units were started into production during the month?
A) 68,000 units 
B) 84,000 units 
C) 72,000 units 
D) 56,000 units

Quizplus · Accepted Answer

To find the units started into production, we need to look at the total units in beginning work in process inventory and add the units started during the month. From the given chart, the beginning work in process inventory was 10,000 units. The chart also tells us that there were 68,000 units completed and transferred out, which means that the total units accounted for are 10,000 (beginning inventory) + 68,000 (transferred out) = 78,000. Therefore, the units started into production during the month would be: total units accounted for (78,000) - ending work in process inventory (6,000) = 72,000 units.

Sumter Corporation Uses the Weighted-Average Method in Its Process Costing