The Completion Department transferred 8,000 units to the finished goods storeroom during a month. There was no beginning work in process inventory, but 1,000 units were still in process at the end of the month, and were 40% complete. Inventory costs at the end of the month were $3.50.
What were total production costs for the month?
Process costing is a system of cost accounting which uses cost per equivalent units and equivalent units in production as the basis to transfer production costs to the cost of goods sold and ending inventory accounts. It is used by companies in production of large quantities of similar products.
Answer and Explanation: 1
|Calculation of Production costs|
|Equivalent units of units completed||8000|
|Cost per equivalent...|
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fromChapter 1 / Lesson 12
Learn about process costing. Study the process costing definition, examine process costing examples, and discover why process costing systems are so important.