During October, Department A started 320,000 units of product in a particular manufacturing process. The beginning work in process inventory was 50,000 units, and the ending inventory was 30,000 units. Direct materials are introduced at the start of processing, and beginning and ending inventories are considered to be 50 percent complete with respect to conversion costs. Department A uses the FIFO costing method. Units transferred out during October were
A) 335,000.
B) 370,000.
C) 325,000.
D) 340,000.

Question

Quizplus · Accepted Answer

The units transferred out are calculated as: Beginning inventory (50,000) + Units started (320,000) - Ending inventory (30,000) = 340,000 units.

During October, Department a Started 320,000 Units of Product in a Particular