During March, the Production Department of a Process Manufacturing System

question 108

Multiple Choice

During March, the production department of a process manufacturing system completed a number of units of a product and transferred them to finished goods. Of the units transferred, 25,000 were in process at the beginning of March and 110,000 were started and completed in March. March's beginning inventory units were 100% complete with respect to materials and 55% complete with respect to labor. At the end of March, 30,000 additional units were in process in the production department and were 100% complete with respect to materials and 30% complete with respect to labor. Compute the number of units transferred to finished goods.

• A) 110,000.
• B) 135,000.
• C) 105,000.
• D) 165,000.
• E) 144,000.

---

Definitions:

Safety Stock Inventory

A quantity of inventory kept on hand as a buffer against fluctuations in demand or supply.

Inventory Model

An analytical approach or mathematical formula used to manage and control stock levels, optimizing inventory costs and meeting demand.

Ordering Cost

The cost of the ordering process.

Carrying Cost

Carrying cost refers to the total cost of holding inventory, including storage, insurance, spoilage, and opportunity costs.