The completed goods and the accumulated costs are

The completed goods and the accumulated costs are transferred across
departments using a journal entry that includes a debit to the Finished Goods
Inventory account and a credit to the Work in Process account for the final
department in the series of processes.
Equivalent units of production measure the activity of a process as the number of
units that would be completed in a period if all effort had been applied to units that
were started and finished. This measure of production activity is used to compute
the cost per equivalent unit and to assign costs to finished goods and work in
process inventory. To compute equivalent units, determine the number of units that
would have been finished if all materials (or conversion) had been used to produce
units that were started and completed during the period. The costs incurred by a
process are divided by its equivalent units to yield cost per equivalent unit.
If a production department has a beginning or ending inventory of partially
processed units, the cost of each unit transferred out of the department is
computed by dividing the total cost assigned to the department by
the_______________.
a) equivalent units of production
b) total number of units started and finished in the period
If a production department has a beginning or ending inventory of partially
processed units, the cost of each unit transferred out of the department is
computed by dividing the total cost assigned to the department by the equivalent
units of production.

Assume that your professor, who always drinks water during class, walked into class
today with six bottles of water. Each bottle of water was one-half full. You wonder
why she chose to juggle so many water bottles along with her textbook and notes.
You realize that she could have simply carried:
If your instructor had poured three of the half-full bottles of water into the other
three half-full bottles of water, she could have walked into class with three full
bottles of water. Or, in other words, six bottles of water that are 50% (or one-half
full) are equivalent to three bottles of water that are (100%) full.
The _____ method computes equivalent units based only on production activity in
the current period.
A process cost summary reports on the activities of a production process or
department for a period. It describes the costs charged to the department, the
equivalent units of production for the department, and the costs assigned to the
output. The report aims to (1) help managers control their departments, (2) help
factory managers evaluate department managers’ performance, and (3) provide
cost information for financial statements. A process cost summary includes the