Department W had 2,400 units, one-third completed at the beginning of the period; 16,000 units were transferred to Department X from Department W during the period; and 1,800 units were one-half completed at the end of the period. Assume the completion ratios apply to direct materials and conversion costs.
-The total number of units to be assigned cost on the cost of production report for Department W is
A)12,000 units
B)13,600 units
C)18,500 units
D)17,800 units

Question

Department W had 2,400 units, one-third completed at the beginning of the period; 16,000 units were transferred to Department X from Department W during the period; and 1,800 units were one-half completed at the end of the period. Assume the completion ratios apply to direct materials and conversion costs.​
-The total number of units to be assigned cost on the cost of production report for Department W is
A)12,000 units
B)13,600 units
C)18,500 units
D)17,800 units

Quizplus · Accepted Answer

The total number of units to be assigned cost includes the units at the beginning of the period, units transferred out during the period, and the units partially completed at the end of the period. The calculation is as follows: Beginning units (2,400 units at one-third completed, but since they are completed during the period, they count as fully completed for this period's cost assignment) + Transferred out units (16,000 units) + Ending units (1,800 units at one-half completed, but for cost purposes, we count the full units). Therefore, the total units to be assigned cost = 2,400 + 16,000 + 1,800 = 20,200 units. However, since the completion ratios apply to direct materials and conversion costs, and the question seems to imply a calculation error in the provided options, the correct approach to find the answer that matches the options given would involve considering the effective completion of beginning and ending inventories. Given the options, none directly match the calculated total, suggesting a need to reevaluate the interpretation of the question or the provided data. The correct answer based on the options given and typical cost accounting principles would involve calculating the equivalent units of production, but the provided calculation directly does not align with standard approaches or the given options. Therefore, the selection of "D) 17,800 units" is based on interpreting the question's intent and the common mistake in the calculation process, acknowledging a discrepancy in the explanation.

Department W Had 2,400 Units, One-Third Completed at the Beginning