In the month of June, a department had 20,000 units in beginning work in process that were 70% complete. During June, 80,000 units were transferred into production from another department. At the end of June there were 10,000 units in ending work in process that were 40% complete. Materials are added at the beginning of the process, while conversion costs are incurred uniformly throughout the process. How many units were transferred out of the process in June? Question 1 options: 80,000 units 70,000 units 90,000 units 100,000 units

Question

Amir

Business

30 November, 20:25

In the month of June, a department had 20,000 units in beginning work in process that were 70% complete. During June, 80,000 units were transferred into production from another department. At the end of June there were 10,000 units in ending work in process that were 40% complete. Materials are added at the beginning of the process, while conversion costs are incurred uniformly throughout the process. How many units were transferred out of the process in June? Question 1 options: 80,000 units 70,000 units 90,000 units 100,000 units

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Answers (1)

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Astro · Answer 1

Answer: Option (c) is correct.

Explanation:

Given that,

Beginning work in process = 20,000 units and 70% completed

So, Units transferred = 20,000 * 30%

= 6,000

Direct transferred = 80,000 units

Ending work in process = 10,000 * 40%

= 4,000

Therefore,

Units were transferred out of the process in June:

= Beginning WIP transferred + Direct transferred + Ending work in process

= 6,000 + 80,000 + 4,000

= 90,000 units