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Question - Data concerning a recent period's activity in the Prep Department, the first processing department in a company that uses processing costs, appear below.
Material Conversion
Equivalent units of production in ending work in process 2,000 800
Cost per equivalent unit $13.86 $4.43
A total of 20,100 units were completed and transferred to the next processing department during the period.
Required: Compute the cost of the units transferred to the next department during the period and the cost of the ending work in process inventory.
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