Question

During January, the solar cell factory begins 57,000 solar cells, and completes 53,000 of them. The remaining 4,000 solar cells are 25% through the production process. 61,000 solar cells are sold during the month.Actual production costs (i.e., costs put into production during the month) are $12.9 million: $3.1 million direct material and $9.8 million fixed overhead.1. After all needed adjustments have been made, and under absorption costing, what is the total cost included in (20 points)a. finished goods inventory as of January 31

Answer 1

Answer:

"2000 units" is the right solution.

Explanation:

The given values are:

Transferred from WIP,

= 53,000 units

Units sold,

= 61,000 units

Beginning inventory,

= 10000 units

Now,

The total number of finished goods will be:

= $( Beginning \Inventory + Transferred \ from \ WIP - Units \ Sold )$

On substituting the values, we get

= $( 10000 + 53000 - 61000 )$

= $2000 \ Units$