Xin Co., had 3,000 units of work in process on April 1 that were 60% complete. During April, 10,000 units were completed and as of April 30, 4,000 units that were 40% complete remained in production. How many units were started during April?
A) 8,600.
B) 9,800.
C) 11,000.
D) 12,200.
E) None of the other answers are correct.

Question

Quizplus · Accepted Answer

To determine how many units were started during April, we need to use the concept of equivalent units, which accounts for partially completed units as a fraction of whole units.

Equivalent units for work in process on April 1: 
3,000 × 60% = 1,800 units

Equivalent units for units completed during April:
10,000 units × 100% = 10,000

Equivalent units for work in process on April 30:
4,000 × 40% = 1,600 units

Total equivalent units for April:
1,800 + 10,000 + 1,600 = 13,400 units

To find out how many units were started, we need to subtract the units that were in the beginning work in process inventory from the total equivalent units for April and units that were remaining in process:

13,400 - 1,800 = 11,600
11,600 - 4,000 = 7,600

Therefore, 11,000 units were started during April. Answer: C.

Xin Co, Had 3,000 Units of Work in Process on April