Use the information below to answer the following question(s).Plastic Molding, Inc.'s costing system utilizes two cost categories; direct materials and conversion costs.Each product must pass through the Assembly Department and the Testing Department.Direct materials are added at the beginning of production.Conversion costs are allocated evenly throughout production.Data for the Assembly Department for March are:

-How many units were completed and transferred out of the Assembly Department during March?
A)200 units
B)1,200 units
C)1,400 units
D)1,600 units
E)1,720 units

Question

Use the information below to answer the following question(s).Plastic Molding, Inc.'s costing system utilizes two cost categories; direct materials and conversion costs.Each product must pass through the Assembly Department and the Testing Department.Direct materials are added at the beginning of production.Conversion costs are allocated evenly throughout production.Data for the Assembly Department for March are:
 
-How many units were completed and transferred out of the Assembly Department during March?
A)200 units 
B)1,200 units 
C)1,400 units 
D)1,600 units 
E)1,720 units

Quizplus · Accepted Answer

Based on the information provided, we can see that the units that were in process at the beginning of March (1000) plus the units started during March (400) equal the total units to account for (1400). Since it is stated that all units must pass through the Assembly Department before moving on to the Testing Department, we can assume that all 1400 units were completed and transferred out of the Assembly Department during March. Therefore, the answer is C) 1400 units.

Use the Information Below to Answer the Following Question(s)