In: Finance
Elite Company uses the weighted-average method in its process costing system. The company had 2,000 units in work in process at April 1, that were 60% complete with respect to conversion cost. During April, 15,000 units were completed. At 30 April 5,000 units remained in work in process and they were 40% complete with respect to conversion cost. Direct materials are added at the beginning of the process. How many units were started during April?
Select one:
a. 18000
b. 20000
c. 15000
d. 5000
Option a, 18000
Units to account for | |
Beginning WIP | 2000 |
Transferred in | 18000 |
Total units to account for | 20000 |
Units accounted for: | |
Started and completed | 15000 |
Ending WIP | 5000 |
Equivalent units | 20000 |