Asked by Jenna Raney on May 21, 2024
Verified
The units in beginning work in process inventory plus the units started into production must equal the units transferred out of the department plus the units in ending work in process inventory.
Ending Work in Process Inventory
The value of goods that are partially completed at the end of an accounting period, which have not yet been transferred to finished goods inventory.
Units Transferred Out
The total quantity of items that have completed the production process and are moved out of the work-in-process stage.
- Gain insight into the idea of equivalent units and the procedure for computing them within a process costing system.
Verified Answer
QA
Qasim AbosiMay 23, 2024
Final Answer :
True
Explanation :
This is known as the production flow equation and it is true for any manufacturing process. It ensures that all units produced are accounted for, either as finished goods or as work in process inventory.
Learning Objectives
- Gain insight into the idea of equivalent units and the procedure for computing them within a process costing system.
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