Hamada Inc., manufactures cover for car seats. Its costing system utilizes two cost categories, direct materials and conversion costs. Each product must pass through two Departments X and Y. Direct materials are added at the beginning of production. Conversion costs are allocated evenly throughout production. Data for Department X for February 2020 are: WIP beginning, 40% complete 200 units, Units started during February 600 units, and WIP ending 30% complete 100 units. The number of units completed and transferred to department Y is:

a. 400 units.

b. 700 units.

c. 500 units.

d. 800 units.

A company produces three products; if one product is overcosted then:

a. two products are undercosted.

b. one or two products are undercosted.

c. one product is undercosted.

d. no products are undercosted.