Unit Manufacturing Company Had No Work in Process at the Beginning

question 77

Multiple Choice

Unit Manufacturing Company had no work in process at the beginning of a month. At the end of the month, 600 units were still in process at the end of the month, and were 40% complete. Equivalent production for the month was 5,240 units. How many units were transferred out of production to finished goods during the month?

• A) 5,240 units.
• B) 5,000 units.
• C) 4,760 units.
• D) 4,400 units. 5,240 - (600 x 40%).

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Definitions:

Production Costs

Expenses directly associated with the manufacturing of goods, including materials, labor, and overhead.

Variable Costing

A cost accounting method that includes only variable production costs in unit product costs, and treats fixed costs as period expenses that are charged against revenue in the period they are incurred.

Variable Costs

Costs that change in proportion to the level of goods or services a business produces.