A department transferred 7,000 units to the finished goods storeroom during a month.There was no beginning work in process inventory,but 500 units were still in process at the end of the month.Equivalent production for the month was 7,400 units,and production costs incurred totaled $16,800.Inventory costs would be determined using a unit cost of

Question

Quizplus · Accepted Answer

The unit cost is calculated by dividing the total production costs by the equivalent production. In this case, the unit cost is $16,800 / 7,400 units = $2.27.

A Department Transferred 7,000 Units to the Finished Goods Storeroom