Answer:
$130,000
Explanation:
Calculation to determine the value of the inventory transferred to the next department
First step is to calculate the Cost per unit
Using this formula
Cost per unit = Direct material costs + Direct labor costs + Overhead
Let plug in the formula
Cost per unit=$3+$5+(100%*$5)
Cost per unit = $3 + $5 + $5
Cost per unit = $13
Second step is to calculate the inventory transferred using this formula
Inventory transferred = Beginning inventory + Started Inventory - Ending inventory .
Let plug in the formula
Inventory transferred = 2,000 + 9,000 - 1,000
Inventory transferred = 10,000 units
Now let calculate the value of the inventory transferred
Using this formula
Value of inventory transferred = Inventory transferred × Cost per unit
Let plug in the formula
Value of inventory transferred = 10000 × $13
Value of inventory transferred = $130,000
Therefore the value of the inventory transferred to the next department is $130,000
