In: Accounting
At the beginning of the month, the Forming Department of Martin Manufacturing had 22,000 units in inventory, 30% complete as to materials, and 10% complete as to conversion.
During the month the department started 84,000 units and transferred 86,000 units to the next manufacturing department. At the end of the month, the department had 20,000 units in inventory, 90% complete as to materials and 60% complete as to conversion. How many units did the Forming Department start and complete in the current month?
Answer)
Calculation of number of units Started and Completed during the current month
Number of units start and complete during the current month = Total number of units transferred to next manufacturing department – Number of units in beginning work in process inventory
= 86,000 units – 22,000 units
= 64,000 units
Therefore total numbers of units start and complete during the current month are 64,000.
Note: During the current period total 86,000 units were transferred to next manufacturing department out of which 22,000 units were from beginning inventory. Thus 64,000 units (i.e. 86,000 units – 22,000 units) were started and completed during the current period.