Question

Charlie Chairs​ Inc., manufactures plastic moldings for car seats. Its costing system utilizes two cost​ categories, direct materials and conversion costs. Each product must pass through Department A and Department B. Direct materials are added at the beginning of production. Conversion costs are allocated evenly throughout production.

Data for Department A for February 2017 are​:
Work in​ process, beginning​ inventory, 4040​% converted	250 units
Units started during February	960 units
Work in​ process, ending inventory	140 units
Costs for Department A for February 2017 are​:
Work in​ process, beginning​ inventory:
Direct materials	$153,000
Conversion costs	$201,000
Direct materials costs added during February	$600,000
Conversion costs added during February	$435,000

How many units were completed and transferred out of Department A during​ February?

Answer 1

Units transferred = 1070 units

Working

Reconciliation of Units
A	Beginning WIP	250
B	Introduced	960
C=A+B	TOTAL	1,210
D	Ending inventory	140
E=C-D	Transferred out	1,070