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Dessa Cabinetry, Inc., manufactures standard sized modular cabinet units for kitchens and other applications within the...

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.

Data for Finishing Department for March 2017 are:
Work in process, beginning inventory, 20% converted 1,000 units
Units started during February 1,800 units
Work in process, ending inventory 500 units

Costs for Finishing department for March 2017 are:
Work in process, beginning inventory:
Direct materials $200,000
Conversion costs $204,000
Direct materials costs added during February $428,000
Conversion costs added during February $141,000

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

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Answer #1
Work in process, beginning inventory 1000
Add: Units started during month 1800
Less: Work in process, ending inventory -500
Units completed and transferred out 2300
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