Jared Beverage Corporation uses a process costing system to collect costs related to the production of its celery flavored cola.The cola is first processed in a Mixing Department and is then transferred out and finished up in the Bottling Department.The finished cases of cola are then transferred to Finished Goods Inventory.The following information relates to the company's two departments for the month of January: How many cases of cola were completed and transferred to Finished Goods Inventory during January?

A) 70,000
B) 63,000
C) 58,000
D) 77,000

Question

Jared Beverage Corporation uses a process costing system to collect costs related to the production of its celery flavored cola.The cola is first processed in a Mixing Department and is then transferred out and finished up in the Bottling Department.The finished cases of cola are then transferred to Finished Goods Inventory.The following information relates to the company's two departments for the month of January:

How many cases of cola were completed and transferred to Finished Goods Inventory during January?

A) 70,000
B) 63,000
C) 58,000
D) 77,000

Matakala Muhwanga · Accepted Answer

Final Answer : B, Explanation :  Based on the information provided, the Bottling Department completed and transferred out 63,000 cases of cola to Finished Goods Inventory. This information can be found in the bottom row of the Bottling Department's production report, where the total units accounted for (equal to the number of units started and completed during the month plus the number of units in ending work in process inventory) is shown as 63,000 cases. Units completed and transferred out = Units in beginning work in process inventory + Units started into production or transferred in - Units in ending work in process inventoryUnits completed and transferred out = 5,000 + 65,000 - 7,000 = 63,000

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