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3 April, 02:49

Department W had 2,400 units, one-third completed at the beginning of the period, 14,000 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) 14100 units

(B) 12000 units

(C) 15000 units

(D) 11400 units

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  1. 3 April, 06:04
    0
    Equivalent units 14,100

    Explanation:

    equivalent units for Department W

    transferred-out 14,000

    beginning portion: 2,400 x 1/3 = (800)

    ending WIP 1,800 x 1/2 = 900

    Equivalent units 14,100

    As the beginning WIP inventory represent jobs done on a previous period they decrease the amount of equivalent units.
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