ECONOMICS

Detailed explanation-1: -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.

Detailed explanation-2: -Cost of Units Transferred Out is the cost of the units that are finished by the department during the period and transferred out to other departments or to finished goods inventory. The cost includes materials and conversion costs.

Detailed explanation-3: -WIP refers to the raw materials, labor, and overhead costs incurred for products that are at various stages of the production process. WIP is a component of the inventory asset account on the balance sheet. These costs are subsequently transferred to the finished goods account and eventually to the cost of sales.

Detailed explanation-4: -The transferred-in cost is then treated as the starting cost of the receiving work center, to which additional costs may be added by that work center. This concept is used in a process costing system.