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.

How many units were completed and transferred out of the Finishing Department during March?
A) 1000 units
B) 1800 units
C) 2300 units
D) 2660 units

Question

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.

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

How many units were completed and transferred out of the Finishing Department during March?
A) 1000 units 
B) 1800 units 
C) 2300 units 
D) 2660 units

Quizplus · Accepted Answer

Number of units completed and transferred out = 1000 units + 1800 units - 500 units = 2300 units