Roberts uses process costing and has two manufacturing departments. Goods are st

Question

Roberts uses process costing and has two manufacturing departments. Goods are started in Department no. 1, passed along to Department no. 2 where additional parts are attached and processing occurs, and then transferred out to the finished-goods warehouse. The following equivalent-unit costs relate to Department no. 2 for the current period:

Transferred in $19
parts $ 11
Conversion cost $ 6

Production that is completed and transferred to the finished-goods warehouse should be assigned a unit cost of:

Explanation / Answer

Unit Cost = 19 + 11 + 6 = $36

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