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Question - In Department D, materials are added uniformly throughout processing. The beginning inventory was considered 80 per cent complete, as was the ending inventory. Assume that there were 6,000 units in the beginning inventory and 20,000 in the ending inventory, and that 80,000 units were completed and transferred out of Department D. What are the equivalent units for the period using the average cost method?
If in the previous exercise the total costs charged to the department amounted to USD 960,000, including the USD 48,000 cost of the beginning inventory, what is the cost of the units completed and transferred out?
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