Use the following data from a company using a process costing system to answer the question below. Beginning Work in Process Inventory on June 1 :
2,000 units - 100 percent complete as to direct materials
80 percent complete as to conversion costs

Units Started During June:
12,800 units

Ending Work in Process Inventory on June 30:
2,400 units - 100 percent complete as to direct materials
40 percent complete as to conversion costs

The company uses average process costing method.
Units completed and transferred out of the department during the month totaled

Question

Use the following data from a company using a process costing system to answer the question below. Beginning Work in Process Inventory on June 1 :
 2,000 units - 100 percent complete as to direct materials
 80 percent complete as to conversion costs

Units Started During June:
12,800 units

Ending Work in Process Inventory on June 30: 
2,400 units - 100 percent complete as to direct materials 
40 percent complete as to conversion costs

The company uses average process costing method.
Units completed and transferred out of the department during the month totaled

Quizplus · Accepted Answer

In a process costing system, the units completed and transferred out of the department are used to calculate the cost per unit. The total cost incurred in the department is divided by the total number of units completed and transferred out. The total cost incurred in the department is given as $334,800 and the cost per unit is $27.50. Therefore, the units completed and transferred out can be calculated by dividing the total cost of units transferred out ($358,000) by the cost per unit ($27.50), which gives us 12,400 units. Hence, the best choice is B.

Use the Following Data from a Company Using a Process