Figure 6-2. The Bing Corporation produces a product that passes through two processes.During June,the first department transferred 60,000 units to the second department.The cost of the units transferred was $90,000.Materials are added uniformly in the second process.The following information was provided about the second department's operations during June:
Refer to Figure 6-2.Units completed in the second department during June for Bing Corporation would be

Question

Figure 6-2. The Bing Corporation produces a product that passes through two processes.During June,the first department transferred 60,000 units to the second department.The cost of the units transferred was $90,000.Materials are added uniformly in the second process.The following information was provided about the second department's operations during June:
 Refer to Figure 6-2.Units completed in the second department during June for Bing Corporation would be

Quizplus · Accepted Answer

Units completed in the second department during June can be calculated as follows:

Units started and completed = Units transferred in - Ending WIP inventory

Ending WIP inventory = (Beginning WIP inventory + Units started) - Units completed

From the given information, we know:

Units transferred in = 60,000
Beginning WIP inventory = 10,000
Units started = Beginning WIP inventory + Units transferred in = 70,000

To compute the ending WIP inventory, we need to find the equivalent units for the materials added in the second process. We are given that the equivalent units are 75% complete for materials in the second department.

Equivalent units = Units completed + (Ending WIP inventory * % complete)

60,000 units were transferred in and 49,000 were completed. Therefore, the ending WIP inventory must be:

Equivalent units = 49,000 + (Ending WIP inventory * 0.75)

Solving for Ending WIP inventory gives:

Ending WIP inventory = 8,000 units

Using the equation for units started and completed:

Units started and completed = Units transferred in - Ending WIP inventory

Units started and completed = 60,000 - 8,000

Units started and completed = 52,000

Therefore, the answer is B) 52,000 units completed in the second department during June for Bing Corporation.