Question 4

Charlie Chairs Inc., manufactures plastic moldings for car seats. Its costing system utilities two cost categories, direct materials and conversion cost. Each product must pass through Department A and Department B. Direct materials and added at the beginning of production. Conversion costs are allocated through production

DATA FOR DEPARTMENT A FOR FEBRUARY 2017 ARE
Work in process beginning inventory 30% converted	200 UNITS
Units started during February	800 UNITS
Work in process, ending inventory	240 UNITS
COSTS FOR DEPARTMENT A FOR FEBRUARY 2017 ARE
Work in process, beginning inventory	$150,000
Direct materials	$210,000
Conversion costs	$603,000
Direct materials costs added during February	$429,000

How many units were completed and transferred out of Department A during February?

a) 440 units

b) 800 units

c) 760 units

d) 1000 units