In the Month of June a Department Had 20000 Units

question 117

Multiple Choice

In the month of June a department had 20000 units in beginning work in process that were 70% complete. During June 90000 units were transferred into production from another department. At the end of June there were 10000 units in ending work in process that were 40% complete. Materials are added at the beginning of the process while conversion costs are incurred uniformly throughout the process. How many units were transferred out of the process in June?

• A) 90000 units.
• B) 80000 units.
• C) 100000 units.
• D) 110000 units.

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Definitions:

Fixed Costs

Expenses that do not vary with production level or sales volume, such as rent, salaries, and insurance premiums.

Rent

Payment made by a tenant to a landlord for the use of a property.

Depreciation

The allocation of the cost of an asset over its useful life.

EBIT

Earnings Before Interest and Taxes, a measure of a company's profitability that excludes interest and income tax expenses.