Dessa Cabinetry, Inc., manufactures standard sized modular cabinet units for kitchens and other applications within the home. Its costing system utilizes two cost categories, direct materials and conversion costs. Each product must pass through the rough cut department and the finish department. Direct materials are added at the beginning of production. Conversion costs are allocated evenly throughout production.

Data for Finishing Department for March 2017 are:
Work in process, beginning inventory, 20% converted 1,000 units
Units started during February 1,800 units
Work in process, ending inventory 500 units

Costs for Finishing department for March 2017 are:
Work in process, beginning inventory:
Direct materials $200,000
Conversion costs $204,000
Direct materials costs added during February $428,000
Conversion costs added during February $141,000

How many units were completed and transferred out of the Finishing department during March?

Respuesta :

Answer:

2,300 units

Explanation:

Given that,

Data for Finishing Department for March 2017:

Work in process, beginning inventory, 20% converted = 1,000 units

Units started during February = 1,800 units

Work in process, ending inventory = 500 units

Units completed and transferred out:

= Work in process, beginning inventory + Units started during month - Work in process, ending inventory

= 1,000 units + 1,800 units - 500 units

= 2,300 units