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Kew Co. had 3,000 units in work-in-process at April 1 that were 60% complete as to conversion cost. During April, 10,000 units were completed. At April 30, 4,000 units in work-in-process were 40% complete as to conversion cost. Direct materials are added at the beginning of the process. How many units were started during April?
(a) 10,000.
(b) 9,800.
(c) 11,000.
(d) 12,200.
(e) None of the other answers are correct.

Respuesta :

sqdancefan

Answer:

  (b)  9800

Step-by-step explanation:

The balance for the month is ...

  (starting WIP) + (units started) - (units shipped) = (ending WIP)

  3000×0.60 + (units started) - 10,000 = 4000×0.40

  (units started) = 1600 + 10,000 -1800 . . . . subtract the left-side constants

  units started = 9800 . . . . . . . simplify

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If there were any changes in inventory, they would be figured in as well. In this problem, the only inventory is work in process (WIP).

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