A process began the month with 3,000 units in the beginning work in process inventory and ended the month with 2,000 units in the ending work in process. If 12,000 units were completed and transferred out of the process during the month, how many units were started into production during the month?
10,000.
11,000.
13,000.
12,000.
11000
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To determine the number of units started into production during the month, we need to consider the changes in the beginning and ending work in process inventory, as well as the units completed and transferred out of the process.
The formula to calculate units started into production is:
Units started into production = Units completed and transferred out + Ending work in process - Beginning work in process
Given:
Beginning work in process inventory = 3,000 units
Ending work in process inventory = 2,000 units
Units completed and transferred out = 12,000 units
Using the formula, we can calculate:
Units started into production = 12,000 + 2,000 - 3,000
Units started into production = 12,000 - 1,000
Units started into production = 11,000 units
Therefore, the correct answer is 11,000 units.
To find the number of units that were started into production during the month, we can use the formula:
Starting units + Units completed = Ending units + Units started
Given:
Starting units (Beginning work in process inventory) = 3,000 units
Ending units (Ending work in process) = 2,000 units
Units completed = 12,000 units
Substituting the values into the formula:
3,000 + 12,000 = 2,000 + Units started
Simplifying the equation:
12,000 = 2,000 + Units started
Subtracting 2,000 from both sides of the equation:
12,000 - 2,000 = Units started
Therefore:
Units started = 10,000 units
So, the correct answer is 10,000 units.