Question

Jersey Corporation has a process costing system in which it uses the weighted-average method. The equivalent units for conversion costs for the month were 47,500 units. The beginning work in process inventory consisted of 15,000 units, 60% complete with respect to conversion costs. The ending work in process inventory consisted of 10,000 units, 75% complete with respect to conversion costs. The number of units started during the month was__________.

Answer 1

Answer:

Units started=35,000 units

Explanation:

First we will have to calculate the number of units transferred out:

Equivalent units for month=47,500

Ending work in process inventory=10,000*0.75=7,500 units

Formula:

Equivalent units =Units transferred out+ Ending work in process inventory

Units transferred out=Equivalent units - Ending work in process inventory

Units transferred out=47,500=7,500

Units transferred out=40,000 units

Formula for calculating units in the start:

Units transferred out=Units in beginning inventory+Units Started-Units in Ending Inventory

40,000=15,000+Units started-10,000

Units Started=40,000-15,000+10,000

Units started=35,000 units