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Can you please advise how can I get the value of the total value of 24,400 of the 2,500 units transferred as good output to the finished goods?
A company which operates a process costing system had work in progress at the start of last month of 400 units (valued at $1,800) which were 60% complete in respect of all costs.
Last month, a total of 2,500 units were completed and transferred to the finished goods warehouse. The cost per equivalent unit for cost arising last month was $10.
Of the 2,500 finished units, 400 of them were the opening WIP that was then finished and the other 2,100 were new items worked this month.
The value of the WIP is 1,800 + (40% x 400 x $10) = 3,400
The value of the 2,100 items is 2,100 x $10 = $21,000.
So the total value is 3,400 + 21,000 = $24,400