Question

Garrison Corporation uses the FIFO method in its process costing system. Data concerning the first processing department for the most recent month are listed below:

Beginning work-in-process inventory:

Units in beginning work-in-process inventory	600
Material costs	$6,600
Conversion costs	$2,700
Percent complete with respect to materials	60%
Percent complete with respect to conversion	10%
Units started into production during the month	7,000
Materials cost added during the month	$102,200
Conversion costs added during month	$259,200
Ending work-in-process inventory

Ending work-in-process inventory:

Units in ending work-in-process inventory	1,500
Percent complete with respect to materials	55%
Percent complete with respect to conversion	10%

How many units were started AND completed during the month in the first processing department?

Answer 1

Units in beginning work-in-process inventory = 600

Units started into production during the month = 7,000

Units in ending work-in-process inventory = 1,500

Under the FIFO method, it is assumed that units that were not completed last period (beginning work in process) are finished before anything else is started. hence, ending work-in-process inventory consists of the units that are started into production during the current period.

Units started AND completed during the month =  Units started into production during the month - Units in ending work-in-process inventory

= 7,000 - 1,500

= 5,500