The costs transferred in from prior processing were $3 per unit. The cost of goods sold for the
month was $240,000, and the ending finished-goods inventory was $84,000. Wood Glow uses the
first-in, first-out (FIFO) method of inventory valuation.
Wood Glow’s controller, Mark Brandon, has been asked to analyze the packaging department’s
activities for the month of October. Mark knows that to properly determine the department’s unit cost
of production, he must first calculate the equivalent units of production.