Rebex Chemical Company manufactures Compound 2 in two sequential departments. On June 1, Department 2 had 3000 units, which were 50 per cent complete as to conversion cost. During June, 15 000 units were completed and transferred from Department 1. On June 30, Department 2 had 4000 units, which were 20 per cent complete as to conversion costs. How many units were completed and transferred from Department 2 during the month of June?
A) 11 000
B) 12 500
C) 14 000
D) 15 700

Question

Quizplus · Accepted Answer

To find the units completed and transferred from Department 2, we need to account for the work in process at the beginning and end of the month, as well as the units added from Department 1. The calculation is as follows:- Beginning work in process: 3,000 units (50% complete)- Units added from Department 1: 15,000 units- Ending work in process: 4,000 units (20% complete)The units completed and transferred are the total units accounted for minus the units still in process at the end of the period. So, we have:$$ \text{Units completed and transferred} = \text{Beginning WIP} + \text{Units added} - \text{Ending WIP} $$$$ \text{Units completed and transferred} = 3,000 + 15,000 - 4,000 = 14,000 $$Therefore, 14,000 units were completed and transferred from Department 2 during June.

Rebex Chemical Company Manufactures Compound 2 in Two Sequential Departments