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9 June, 13:58

In the month of June, a department had 12,000 units in beginning work in process thatwere 70% complete. During June, 48,000 units were transferred into production fromanother department. At the end of June there were 6,000 units in ending work in processthat were 40% complete. Materials are added at the beginning of the process, whileconversion costs are incurred uniformly throughout the process. How many units weretransferred out of the process in June?

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  1. 9 June, 15:11
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    Answer: 54,000 units

    Explanation:

    Given that,

    Beginning work in process = 12,000 units (70% complete)

    Direct transferred into production = 48,000 units

    Ending work in process = 6,000 units (40% complete)

    Units transferred out of the process in June:

    = Beginning WIP + Direct transferred into production + Ending WIP

    = 30% * 12,000 + 48,000 + 40% * 6,000

    = 3,600 + 48,000 + 2,400

    = 54,000 units
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