Asked by Keely Messer on Jun 03, 2024
Verified
The total units accounted for equals units in
A) beginning work in process - units transferred out.
B) beginning work in process + ending work in process.
C) ending work in process + units transferred out.
D) ending work in process - units started into production.
Beginning Work in Process
The value of goods that are in the process of being manufactured at the start of an accounting period, included in the calculation of cost of goods manufactured.
Ending Work in Process
The total value of goods that are in the production process but are not yet complete by the end of an accounting period.
- Gain an understanding of the strategy for accounting for physical units in process costing systems.
Verified Answer
JM
Jessa Mae RomeroJun 03, 2024
Final Answer :
C
Explanation :
The total units accounted for include the units that are transferred out (i.e. completed units) and the units that are still in process (i.e. ending work in process). Therefore, the correct formula is ending work in process + units transferred out.
Learning Objectives
- Gain an understanding of the strategy for accounting for physical units in process costing systems.
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