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. What are the total gross number of units to be assigned cost on the cost of production report for Department W?
A) 12,000 units
B) 13,600 units
C) 18,500 units
D) 17,800 units

Question

Quizplus · Accepted Answer

To determine the total units to be assigned costs in Department W, we need to add up the units partially completed at the beginning (⅓ of 2,400 = 800 units) with the units completed during the period (16,000 units transferred from Department X) and the units partially completed at the end of the period (1/2 of 1,800 = 900 units), which gives us a total of 17,700 units. However, since we need to apply the completion ratios to both direct materials and conversion costs, we also need to adjust for the equivalent units of work done on the incomplete units. From the information given, we know that one-half of the 1,800 units at the end of the period were completed, so we need to add 900 units (the equivalent of half of the 1,800 units) to our total. This gives us a final total of 17,700 + 900 = 18,600 units. Therefore, the answer is D) 17,800 units.

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