Assuming that the cost of direct materials used by Department Q in May was $440,000, the materials cost assigned to unfinished units at May 31 would be:

Question

Quizplus · Accepted Answer

The materials cost assigned to unfinished units at May 31 would be the cost of materials for the ending inventory units that are partially completed. We can calculate this by multiplying the percentage of completion of the ending inventory units by the total cost of direct materials used in May. If we assume that the ending inventory units are 80% complete, then the materials cost assigned to these units would be:
$440,000 x 80% = $352,000
Therefore, the answer is C) $70,400 (which is 20% of $352,000).

Assuming That the Cost of Direct Materials Used by Department