Question

The units in beginning work in process inventory plus the units in ending work in process inventory must equal the units transferred out of the department plus the units started into production. T/F

Answer 1

Answer:

False

Explanation:

The beginning units plus the units started in production equals units transferred out plus ending work in process.

Beg Units + Units Started= Units Transferred + Ending W I P

The number of units transferred out are obtained from the number of units started and the units already at hand. The ending inventory has those units which only are left behind after the units are transferred out.

Answer 2

Answer:

True. The units must be equal.

Explanation:

Work in process inventory is materials that are in the process of being produced or manufactured into finished goods to be sold to customers

If the units are not equal, it means that some units went missing from the inventory during production.

Beginning work in process inventory accounts for products that are in production but have not yet been completed at the end of an accounting period

The ending work in process inventory is simply the cost of partially completed work as of the end of the accounting period.

The units transferred out of the goods that have been manufactured.

Units started into production  are the number of completed units of an item that a company could theoretically have produced, given the amount of direct materials, direct labor, and manufacturing overhead costs incurred during that period for the items not yet completed

The four values have to be equal in accounting to show a proper balanced account