Figure 6-16
Ramses Corporation produces a product that passes through two processes. During April, the first department transferred 19,000 units to the second department. The cost of the units transferred was $30,000. Materials are added uniformly in the second process. The following information is provided about the second department's operations during October:
Units, beginning work in process 4,000
Units, ending work in process 5,500
-Refer to Figure 6-16. The number of units completed in the second department during April is

Question

Quizplus · Accepted Answer

The number of units completed in the second department can be calculated as follows:
Units started in the second department = Units transferred from the first department = 19,000
Units to be accounted for = Units started + Units in beginning work in process = 19,000 + 4,000 = 23,000
Units accounted for = Units transferred out + Units in ending work in process
Units transferred out = 19,000 (given)
Units in ending work in process = 5,500 (given)
Units accounted for = 19,000 + 5,500 = 24,500
Therefore, the number of units completed in the second department = Units accounted for - Units in beginning work in process
= 24,500 - 4,000
= 20,500
However, this includes the units in ending work in process, so we need to subtract them out to get the number of completed units:
Completed units = Units transferred out - Units in ending work in process
= 19,000 - 5,500
= 13,500
Therefore, the correct answer is A) 17,500 units (i.e., 19,000 - 1,500).

Figure 6-16 Ramses Corporation Produces a Product That Passes Through Two Processes