Question

1 Brody Corp. uses a process costing system. Beginning inventory for January consisted of 1,300 units that were 40% completed. 10,000 units were started during January, On January 31, the inventory consisted of 520 units that were 75% completed. How many units were completed during the period? Multiple Choice 10780 11.399 9.480 11820

Answer 1

Question 1

Answer is Option 1. i.e 10,780 units

Calculation of units completed during the period

Beginning Inventory (40% completed) = 1,300 units

Inventory started for processing during the month = 10,000 units

Closing Inventory (75% complted) = 520 units

Units Completed during the month = Opening Inventory + Started for Processing - Closing Inventory

= 1,300 + 10,000 - 520

= 10,780

Note: Units completed during the month includes units started in prior period as well and excludes units still in process

Question 2

The answer is option 4. i.e., 11,010 units.

Calculation of units started during the month

Beginning Inventory (70% completed) = 1,030 units

Inventory completed during the month = 11,500 units

Closing Inventory (75% complted) = 540 units

Units started during the month = units completed during the month - Opening Inventory + Closing Inventory

= 11,500 - 1,030 + 540

= 11,010

Note: Units completed during the month includes units started in prior period as well and excludes units still in process

Question 3

The answer is option 3. i.e., Equivalent units.

Physical units multiplied by percentage of completion yields Equivalent units.

Equivalent units refers to the comparitive figure of fully completed units to the partially completed physical units.