Question

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. Material 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
A) Calculate the number of units started in the second department during April.
B) Calculate the number of units completed in the second department during April.
C) Calculate the number of units started and completed in the second department during April.

Answer 1

Answer: See explanation

Explanation:

A. The number of units started in the second department during April will be the number of units that is transferred in from the first department. This will be

= 19000 units

B. The number of units completed in the second department during April will be:

= Beginning units + Started Unit - Ending units

= 4000 + 19000 - 5500

= 17500 units

C. The number of units started and completed in the second department during April will be:

= Completed units - units in beginning WIP

= 17500 – 4000

= 13500 units.