On January 1st, 2016, Jim-N-John Inc. had a Beginning Work-in-Process balance of
ID: 340732 • 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.
D) How many physical units does Jim-N-John need to account for during January?
Explanation / Answer
Jim-N-John needs to account for 25000 physical units during January.
Physical Units Beginning work in process 5000 Started into production 20000 Total units to account for 25000