6. In the month of June, a department had 20000 units in beginning work in proce

Question

6. In the month of June, a department had 20000 units in beginning work in process that were 70% complete. During June, 90000 units were started into production. At the end of June there were 10000 units in ending work in process that were 40% complete. All materials are added at the beginning of the process, while conversion costs are incurred uniformly throughout the process. How many units were transferred out of the department in June? a. 90000 units. b. 80000 units. c. 110000 units. d. 100000 units.

Explanation / Answer

d. 100000 units

Units were transferred out of the department in June:

= 20,000 + 90,000 - 10,000

= 100,000 units

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