On January 1st, 2016, Jim-N-John Inc. had a Beginning Work-in-Process balance of
ID: 340730 • Letter: O
Question
On January 1st, 2016, Jim-N-John Inc. had a Beginning Work-in-Process balance of $20,000 ($10,000 of Direct Materials and $10,000 of Conversion) which consisted of 5,000 units which were 40% complete with respect to conversion costs. During January, Jim-N-John started production on an additional 20,000 units and incurred $30,000 in Materials and $50,000 in Conversion costs. Jim-N-John's Ending Work-InProcess consisted of 6,000 units which were 80% complete with respect to conversion costs. Jim-N-John produces a single product. All direct materials are added at the start of the production process while conversion costs are incurred uniformly. Jim-N-John uses a weighted-average process costing system.
A) How many units did Jim-N-John complete during January?
Explanation / Answer
Beginning WIP + Units Started = Units Completed + Ending WIP 20,000 units + 20,000 Units = Units Completed + 6,000 units Solving the Equation we get 40,000 units = Units Completed + 6,000 units. Therefore Units Completed= 40,000-6,000 34,000 Units is the total number of units that were completed by Jim-N John.