The beginning inventory of Department No. 3 was zero. During May, 2,500 units were processed in the department at a cost of $5 per unit. All 2,500 of these units were transferred to Department No. 4 in May at a total cost of $17,500. The unit cost of goods transferred to Department No. 4 in May was:

Question

Quizplus · Accepted Answer

The cost per unit is calculated as total cost/total units. In this case, the total cost is $17,500 and the total units processed in Department No. 3 in May were 2,500. Therefore, the cost per unit is $17,500/2,500 = $7.00.

The Beginning Inventory of Department No