Canada Manufacturers costing system utilizes two cost categories, direct materials and conversion costs. Each product must pass through Department 1 and Department 2. Direct materials are added at the beginning of production. Conversion costs are allocated evenly throughout production.

Data for Department 1 for September 2020 are:

Work in process, beginning inventory, 40% converted 400 units

Units started during February 1,600 units

Work in process, ending inventory 200 units

Costs for Department 1 for September 2020 are:

Work in process, beginning inventory:

Direct materials $150,000

Conversion costs $200,000

Direct materials costs added during February $600,000

Conversion costs added during February $425,000

How many units were completed and transferred out of Department 1 during September?

Select one:

a. 600 units

b. 2,000 units

c.

Not one of the options

d.

1,600 units

e. 1,800 units