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Question - The department had beginning inventory of 5,500 units of product and it started 94, 500 units of products 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. This amount include the cost in the beginning inventory plus additional cost incurred during the period. The target (standard) cost per unit is $9.45.
Required -
1. Compute the equivalent cost per unit, assuming the ending inventory is considered to be 40 percent complete.
2. Compute the equivalent cost per unit, assuming the ending inventory is considered to be 60 percent complete.
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