Problem:
During May, the number of equivalent full units of materials applied to units produced by Department Q totaled 50,000, computed as follows: beginning inventory, 7,000 equivalent full units; units started and completed in May, 35,000 equivalent full units; and ending inventory, 8,000 equivalent full units.
Q1. Refer to the information above. On the basis of this information only:
a. The number of units transferred in May from Department Q to the next process or department was 35,000.
b. There were more units in Department Q's ending inventory than in Department Q's beginning inventory for May.
c. Department Q completed 50,000 units of product during May.
d. Department Q used enough materials during May to produce 50,000 completed units.
Q2. Refer to the information above. Assuming that the cost of direct materials used by Department Q in May was $210,000, the materials cost assigned to unfinished units at May 31 would be:
a. $48,000.
b. $63,000.
c. $33,600.
d. Impossible to determine unless we know the percentage of completion for ending inventory units.