Department B had 1,000 units in beginning work-in-process which had transferred in costs of $2,500 from Department A associated with them. During the period, 12,000 more units having costs of $36,000 were transferred in to Department B from Department A. What is the unit cost for the period of costs transferred from Department A.
A)$2.00
B)$2.75
C)$2.96
D)$3.00

Question

Quizplus · Accepted Answer

When costs transferred in have different unit costs in different periods, these costs must be averaged as follows:
 11eb16ac_e014_d705_984d_eb947b75ab74_TB6154_00 Cost per unit = 38,500 / 13,000 = $2.96

Department B Had 1,000 Units in Beginning Work-In-Process Which Had