Jared Beverage Corporation uses a process costing system to collect costs related to the production of its celery flavored cola.The cola is first processed in a Mixing Department at Health and is then transferred out and finished up in the Bottling Department.The finished cases of cola are then transferred to Finished Goods Inventory.The following information relates to the company's two departments for the month of January:
How many cases of cola were completed and transferred to Finished Goods Inventory during January?
A) 70,000
B) 63,000
C) 58,000
D) 77,000

Question

Jared Beverage Corporation uses a process costing system to collect costs related to the production of its celery flavored cola.The cola is first processed in a Mixing Department at Health and is then transferred out and finished up in the Bottling Department.The finished cases of cola are then transferred to Finished Goods Inventory.The following information relates to the company's two departments for the month of January:
 How many cases of cola were completed and transferred to Finished Goods Inventory during January?
A) 70,000 
B) 63,000 
C) 58,000 
D) 77,000

Quizplus · Accepted Answer

Units completed and transferred out = Units in beginning work in process inventory + Units started into production or transferred in - Units in ending work in process inventory
Units completed and transferred out = 5,000 + 65,000 - 7,000 = 63,000

Jared Beverage Corporation Uses a Process Costing System to Collect