During May, the production department of a process manufacturing system complete

Question

During May, the production department of a process manufacturing system completed a number of units of a product and transferred them to finished goods. Of these transferred units, 37,500 were in process in the production department at the beginning of May and 150,000 were started and completed in May. May’s beginning inventory units were 60% complete with respect to materials and 40% complete with respect to conversion. At the end of May, 51,250 additional units were in process in the production department and were 60% complete with respect to materials and 20% complete with respect to conversion. The production department had $505,035 of direct materials and $396,568 of conversion cost charged to it during May. Its beginning inventory included $74,075 of direct materials cost and $28,493 of conversion cost. Compute the number of units transferred to finished goods?

Explanation / Answer

No. of unit transfereed to finished goods = Opening inventory + Inventory introduced and copleted during may

= 37500 + 150000

= 187500 units

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