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The output of a company's mixing department during the period consists of 25,000 units completed and transferred out, and 15,000 units in ending Work in Process that were 30% complete as to materials and conversion costs.Beginning inventory was 17,000 units that were 15% complete as to materials and conversion costs.
-How many units were started during the period?
A)27,000
B)25,000
C)23,000
D)17,000

Question

Use the following information to answer questions 
The output of a company's mixing department during the period consists of 25,000 units completed and transferred out, and 15,000 units in ending Work in Process that were 30% complete as to materials and conversion costs.Beginning inventory was 17,000 units that were 15% complete as to materials and conversion costs.
-How many units were started during the period?
A)27,000
B)25,000
C)23,000
D)17,000

Quizplus · Accepted Answer

We can use the following formula to determine the number of units started during the period: 
Units started = Units in beginning WIP + Units started and completed - Units in ending WIP
Substituting the given values, we get: 
Units started = (17,000 x 15%) + 25,000 - (15,000 x 30%)
Units started = 2,550 + 25,000 - 4,500
Units started = 22,050
Therefore, the answer is choice C) 23,000 units.

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