Question

The Nichols Company uses the weighted-average method in its process costing system. The company recorded 29,500 equivalent units for conversion costs for November in a particular department. There were 6,000 units in the ending work in process inventory on November 30,75% complete with respect to conversion costs. The November 1 work in process inventory consisted of 8,000 units, 50% complete with respect to conversion costs. A total of 25,000 units were completed and transferred out of the department during the month.
The number of units started during November in the department was:

A. 23,000 units
B. 24,500 units
C. 27,000 units
D. 21,000 units

Answer 1

Answer:

A. 23,000 units

Explanation:

We need to find out the total number of units Nichols Company started in the department during November.

Which will be calculated as:

Units started into production = Ending work in process inventory + Units completed and transferred out - Beginning work in process inventory

Ending work in process inventory = 6,000 units

Units completed and transferred out = 25,000 units

Beginning work in process inventory = 8,000 units

= 6,000 + 25,000 - 8,000 = 23,000 units.