ECONOMICS

Detailed explanation-1: -Units Completed and transferred out: Total units completed this period. Total units finished from beginning work in process + units started and completed this period.

Detailed explanation-2: -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-3: -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-4: -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.