How to Calculate Units in Beginning Inventory for Bildy Corp's Process Costing System?
What is the total number of units in beginning inventory on January 1 for Bildy Corp based on the given data?
There were 1,750 units in beginning inventory on January 1.
Explanation
To find the total units in the beginning inventory, we add the units from the excess completed units (500 units) and the equivalent completed units of the partially completed units (75 units), which equals 575 units. Therefore, the total units in the beginning inventory on January 1 were 10,800 (started) - 11,300 (completed) + 575 = 1,750 units.