The Painting Department transferred 5,000 units to the finished goods storeroom during a month. There was no beginning work in process inventory, but 800 units were still in process at the end of the month, and were 65% complete. Production costs incurred for the month totaled $24,230. Inventory costs would be determined using a unit cost (rounded to two decimal places)of

Question

Quizplus · Accepted Answer

The total equivalent units of production are the sum of completed units and the equivalent units for the units in process. The completed units are 5,000, and the equivalent units for the in-process units are 800 units * 65% = 520 units. Therefore, the total equivalent units are 5,000 + 520 = 5,520 units. The cost per equivalent unit is $24,230 / 5,520 units = $4.39 (rounded to two decimal places).

The Painting Department Transferred 5,000 Units to the Finished Goods