Reference no: EM132540241

QualCo manufactures a single product in two departments: Cutting and Assembly. During May, the Cutting department completed a number of units of a product and transferred them to Assembly. Of these transferred units, 39,200 were in process in the Cutting department at the beginning of May and 167,500 were started and completed in May. May's Cutting department beginning inventory units were 75% complete with respect to materials and 25% complete with respect to conversion. At the end of May, 53,000 additional units were in process in the Cutting department and were 75% complete with respect to materials and 20% complete with respect to conversion. The Cutting department had $573,012 of direct materials and $479,325 of conversion cost charged to it during May. Its beginning inventory included $75,775 of direct materials cost and $30,193 of conversion cost.

Question 1: How would compute the number of units transferred to assembly? How would assign May costs to the units transferred out and assign costs to its ending work in process inventory using the FIFO method