The Finishing Department Had 5,000 Incomplete Units in Its Beginning

question 44

Multiple Choice

The Finishing Department had 5,000 incomplete units in its beginning Work-in-Process Inventory which were 100% complete as to materials and 30% complete as to conversion costs. 15,000 units were received from the previous department. The ending Work-in-Process Inventory consisted of 2,000 units which were 50% complete as to materials and 30% complete as to conversion costs. The Finishing Department uses first-in, first-out (FIFO) process costing.
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How many units were transferred-out during the period?

• A) 12,000.
• B) 13,000.
• C) 18,000.
• D) 20,000.

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Definitions:

Divisionalized Form

An organizational structure where operations are segmented into semi-autonomous divisions, each focused on a particular product line or geographic area.

Departmentalization

The process of dividing an organization into different departments or units, each specializing in certain tasks or functions.

Team-Based Structures

Team-based structures are organizational arrangements where work is coordinated and carried out primarily through teams rather than traditional hierarchical lines.

Divisionalized Structures

An organizational structure where operations are segregated based on products, services, markets, or geographical locations.