The Finishing Department had 5,000 incomplete units in its beginning Work-in-Process Inventory which were 100% complete as to materials and 30% complete as to conversion costs. 15,000 units were received from the previous department. The ending Work-in-Process Inventory consisted of 2,000 units which were 50% complete as to materials and 30% complete as to conversion costs. The Finishing Department uses first-in, first-out (FIFO) process costing.
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How many units were started and completed during the period?
A) 12,000.
B) 13,000.
C) 18,000.
D) 20,000.

Question

Quizplus · Accepted Answer

The total units to account for are 20,000 (5,000 beginning + 15,000 received). The ending inventory is 2,000 units, so 18,000 units were completed and transferred out. Since 5,000 were beginning inventory, 13,000 units were started and completed during the period (18,000 - 5,000).

The Finishing Department Had 5,000 Incomplete Units in Its Beginning