ECONOMICS

Detailed explanation-1: -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-2: -The total cost assigned to units transferred out equals the cost per equivalent unit times the number of equivalent units.

Detailed explanation-3: -In the given situation, % of completion is 60% of 1000 units. Therefore 600 units are to be considered as equivalent units.

Detailed explanation-4: -Transferred-in cost is also referred to as the accumulated cost of a product when it first arrives in the production department. The unit cost of a product is determined by dividing the total costs charged to the production department by the output of that department.