Author Question: Dessa Cabinetry, Inc., manufactures standard sized modular cabinet units for kitchens and other ... (Read 34 times)

j.rubin · **on:** Mar 6, 2021

Dessa Cabinetry, Inc., manufactures standard sized modular cabinet units for kitchens and other applications within the home. Its costing system utilizes two cost categories, direct materials and conversion costs. Each product must pass through the rough cut department and the finish department. Direct materials are added at the beginning of production. Conversion costs are allocated evenly throughout production.

Data for Finishing Department for March 2017 are:

Work in process, beginning inventory, 20% converted

1000 units

Units started during February

1800 units

Work in process, ending inventory

500 units

Costs for Finishing Department for March 2017 are:
Work in process, beginning inventory:

Direct materials

$200,000

Conversion costs

$204,000

Direct materials costs added during February

$428,000

Conversion costs added during February

$141,000

How many units were completed and transferred out of the Finishing Department during March?
◦ 1000 units
◦ 1800 units
◦ 2300 units
◦ 2660 units

chereeb · **Reply #1 on:** Mar 6, 2021

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