To determine how much cost should be transferred out of Work in Process Inventory:
A)multiply costs per equivalent unit by the number of equivalent units associated with units completed.
B)multiply costs per equivalent unit by the number of equivalent units associated with ending inventory.
C)subtract cost of beginning inventory from current period costs.
D)add cost of beginning inventory and current period costs.

Question

Quizplus · Accepted Answer

The cost of units completed during the period should be transferred out of work in process inventory and into finished goods inventory (or cost of goods sold). To determine the cost of units completed, one should multiply the costs per equivalent unit by the number of equivalent units associated with units completed. This will give the total cost of the completed units to be transferred out of work in process inventory.

To Determine How Much Cost Should Be Transferred Out of Work