ECONOMICS

Detailed explanation-1: -The sum of the beginning inventory units and the number of units started during the period determines the: Units completed during the period.

Detailed explanation-2: -Beginning Work-in-Process Inventory is units already started in the previous period but still not finished before the end of the period. The ending work-in-process of the last period will be the beginning work-in-process of the current period.

Detailed explanation-3: -The first-in-first-out (FIFO) method keeps beginning inventory costs separate from current period costs and assumes that beginning inventory units are completed and transferred out before the units started during the current period are completed and transferred out.

Detailed explanation-4: -To calculate the goods transferred out, simply take the units transferred out times the sum of the two equivalent unit costs (materials and conversion) because all items transferred to the next department are complete with respect to materials and conversion, so each unit brings all its costs.

Detailed explanation-5: -Costs of units started and completed: you will take the equivalent units calculated for units started and completed x the cost per equivalent unit for materials, labor and overhead (or conversion). The sum of these 3 will be the cost of units completed and transferred which is also known as cost of goods manufactured.