A manufacturer has two manufacturing departments, Assembly and Painting. The company uses the FIFO method and it reports the following data. Units completed in the Assembly department are transferred to the Painting department. Units Direct materials Percent Complete Conversion Percent Complete Beginning work in process inventory 75,000 60% 40% Units started this period 900,000 Units completed and transferred out 885,000 Ending work in process inventory 90,000 80% 30% Production cost information for the Assembly department follows. Beginning work in process Direct materials $ 134,400 Conversion 45,900 $ 180,300 Costs added this period Direct materials $ 3,693,600 Conversion 2,690,100 $ 6,383,700 Calculate the number of units started and completed this period for the Assembly department.

Respuesta :

The number of units that the manufacturer started and completed this period for the Assembly Department is 810,000 units.

Data and Calculations:

                                             Units        Direct materials       Conversion

                                                          Percent Complete   Percent Complete

Beginning WIP inventory    75,000               60%                       40%

Units started this period  900,000

Units completed and

transferred out               885,000

Ending WIP inventory       90,000               80%                        30%

Units started and completed this period = Units completed and transferred out - Beginning work in progress inventory

= 810,000 units (885,000 - 75,000)

Thus, it is also equal to Units started in the Assembly Department during the period minus Ending work in progress inventory

= 810,000 units (900,000 - 90,000)

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