Managerial accounting creating value in a dynamic business e
Managerial accounting: creating value in a dynamic business environment (9th ed). Problem 4-26 The answer to Work in Process June 30 is 60,000. How is this calculated? Is it Work in process, June 1 50,000 plus Units started during June 200,000 minus Units completed during June and transferred out to finished-goods inventory 190,000
Solution
Yes
In Process costing, Units in ending work in process is calculated as follows:
| Work in Process, June 1 | 50,000 units |
| Add:Units started during June | 200,000 units |
| Total | 250,000 units |
| Less:Units completed and transferred out to finishsed goods inventory | 190,000 units |
| Work in process, June 30 | 60,000 units |
