The Painting Department transferred 6,000 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 70% complete, and production costs incurred totaled $21,320. 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 incurred by the equivalent units, which is 6,000 + (800 x 70%) = 6560. Therefore, the unit cost is $21,320 / 6560 = $3.25. Therefore, the inventory costs would be determined using a unit cost of $3.25, which is option C.

The Painting Department Transferred 6,000 Units to the Finished Goods