Zanzibar Metals utilizes a process costing system with three processing departments-melting, molding, and packaging.Its Melting Department had 500 units in Work in Process inventory at June 1.Ending Work in Process inventory on June 30consisted of 400 units.Materials are added at the beginning of the process.The beginning cost of materials totaled $900.The cost of materials added during June was $3,960.If the material cost per unit for June was $1.35, how many units would have been completed and transferred out during the period? A)3,600 units B)3,200 units C)2,933 units D)3,100 units

Question

Quizplus · Accepted Answer

The total material cost for June is $900 (beginning) + $3,960 (added) = $4,860. With a material cost per unit of $1.35, the total units processed are $4,860 / $1.35 = 3,600 units. Since there are 400 units in ending inventory, the units completed and transferred out are 3,600 - 400 = 3,200 units.

Zanzibar Metals Utilizes a Process Costing System with Three Processing