The Acme Company manufactures toys. Material introduced at the beginning of the process in department 2.
Conversion costs are incurred uniformly throughout the process. As the materials are finished in department 2, they are immediately transferred to department 3. Data for department 1 for the month of March are as follows:
Work in process, March 1 — 75,000 units <-------- is this BI?
(100% complete for materials, 30% complete for conversion; actual costs for direct materials is $65,000; actual costs for conversion is $40,000; actual costs for transferred in is $30.000.
Units started during March 190,000 units
Work in process, March 31 — 50,000
(100% complete for direct materials; 50% for conversion costs)
Direct materials costs added during the period - $352,000
Conversion costs added during the period - $342,000
Transferred in costs added during the period - $150,000
My question is, which of these (or these combined) represents Beginning Inventory?