The department had beginning inventory of 5,500 units of product and it started 94,500 units during the period. It transferred out 90,000 units during the period. Total transferred-in and production cost for the period was $902,400.00. This amount included the cost in beginning inventory plus additional costs incurred during the period. The target (standard) cost per unit is $9.45. What is the equivalent cost per unit, assuming ending inventory is 40% complete? What is the equivalent cost per unit, assuming ending inventory is 60% complete?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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The department had beginning inventory of 5,500 units of product and it started 94,500 units during the period. It transferred out 90,000 units during the period. Total transferred-in and production cost for the period was $902,400.00. This amount included the cost in beginning inventory plus additional costs incurred during the period. The target (standard) cost per unit is $9.45.

What is the equivalent cost per unit, assuming ending inventory is 40% complete?

What is the equivalent cost per unit, assuming ending inventory is 60% complete?

 

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