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

The number of units started in the second department during April is 15,000 units. The number of units completed in the second department during April is 9,500 units. The number of units started and completed in the second department during April is 9,500 units.

Step-by-step explanation:

A) To calculate the number of units started in the second department during April, we need to subtract the beginning work-in-process units from the units transferred from the first department. Therefore, the number of units started in the second department during April is 19,000 - 4,000 = 15,000 units.

B) To calculate the number of units completed in the second department during April, we need to subtract the ending work-in-process units from the units started in the second department. Therefore, the number of units completed in the second department during April is 15,000 - 5,500 = 9,500 units.

C) The number of units started and completed in the second department during April is the same as the number of units completed in the second department. Therefore, the number of units started and completed in the second department during April is 9,500 units.

Answer 2

Answer: See explanation

Step-by-step 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.