In Shady Company, materials are entered at the beginning of each process. Work in process inventories, with the percentage of work done on conversion costs, and production data for its Sterilizing Department in selected months during 2020 are as follows. Beginning Work in Process Ending Work in Process Month Units Conversion Cost% Units Transferred Out Units Conversion Cost% January 0 - 11,900 3,000 69 March 0 - 12,200 4,200 33 May 0 - 15,600 7,620 80 July 0 - 10,500 2,100 46 Compute the physical units for January and May.

Question

Business

Haiden Newton

24 March, 12:28

In Shady Company, materials are entered at the beginning of each process. Work in process inventories, with the percentage of work done on conversion costs, and production data for its Sterilizing Department in selected months during 2020 are as follows. Beginning Work in Process Ending Work in Process Month Units Conversion Cost% Units Transferred Out Units Conversion Cost% January 0 - 11,900 3,000 69 March 0 - 12,200 4,200 33 May 0 - 15,600 7,620 80 July 0 - 10,500 2,100 46 Compute the physical units for January and May.

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Booker · Answer 1

Physical Units in January 14,900

Physical Units in May 23,220

Explanation:

The question is to compute physical units for January and May for Shady Company based on the given information

Physical Units (Also known as the units to be accounted for)

= The Opening Workin Progress + The Units Started into Production

Note that this Units should also be equal to the following

= Units Transferred Out + the Ending Work in Progress units

It is therefore computed as follows:

Description January May

Units to be accounted for 0 0

Opening WIP

Started into Production 14,900 23,220

January (11,900 + 3,000)

May (15,600 + 7,620)

Total Units 14,900 23,200

Units accounted for

Units Transferred out 11,900 15,600

Closing Work in Progress 3,000 7,620

Total Units 14,900 23,200