The cost per equivalent unit must be computed for transferred-in costs,as well as direct materials and conversions costs,in a subsequent department.

Question

Quizplus · Accepted Answer

The cost per equivalent unit is calculated for all costs incurred in a subsequent department, including transferred-in costs, direct materials costs, and conversion costs. This is necessary to accurately allocate costs to the units being produced in the next department.

The Cost Per Equivalent Unit Must Be Computed for Transferred-In