The June 1 work in process inventory consisted of 5,000 units with $16,000 in materials cost and $12,000 in conversion cost. The June 1 work in process inventory was 100% complete with respect to materials and 50% complete with respect to conversion. During June, 37,500 units were started into production. The June 30 work in process inventory consisted of 8,000 units that were 100% complete with respect to materials and 40% complete with respect to conversion. 3. How many units were completed and transferred to finished goods during the period?

The units completed and transferred to finished goods during the period were:

= 34,500 units.

Explanation:

a) Data and Calculations:

                                           Units  Materials Cost  Conversion Cost  Total

Beginning work in process 5,000     $16,000         $12,000           $28,000

Degree of completion of WIP               100%                50%

Units started                     37,500

Units available                  42,500 (5,000 + 37,500)

Ending work in process     8,000        100%                40%

Units completed             34,500 (42,500 - 8,000)

Equivalent units using the weighted average method:

                                                              Materials            Conversion

Units completed and transferred out   34,500 (100%)   34,500 (100%)

Ending work in process at June 30        8,000 (100%)     3,200 (40%)

Total equivalent units                            42,500              36,700

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