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Exercise 4-9 Equivalent Units and Cost per Equivalent Unit-Weighted Average Method [LO4-2, LO4-3] Pureform, Inc., uses the weighted average method in its process costing system. It manufactures a product that passes through two departments. Data for a recent month for the first department follow: Labor $ 27,900 Overhead $ 34,600 Units Materials Work in process 64,000 $ 64,800 inventory, beginning Units started in 609,000 process Units transferred out 630,000 Work in process 43,000 inventory, ending Cost added during the $856,330 month $343,735 $426,740 The beginning work in process inventory was 85% complete with respect to materials and 70% complete with respect to labor and overhead. The ending work in process inventory was 65% complete with respect to materials and 25% complete with respect to labor and overhead. Required: 1. Compute the first department's equivalent units of production for materials, labor, and overhead for the month. 2. Determine the first department's cost per equivalent unit for materials, labor, and overhead for the month. (Round your answers to 2 decimal places.) Materials Labor Overhead 4 Equivalent units of I'production Cost per equivalent - unit

Answer 1

Pureform Inc. Requirement 1 Materials Labor Overhead Units transferred to the next department 630000 630000 630000 Equivalent units in ending work in process inventory: Materials:43,000 units x 65% complete Labor and overhead:43,000 units x 25% complete 27950 10750 10750 Equivalent units of production 657950 640750 640750 Requirement 2 Materials Labor Overhead Cost of beginning work in process Cost added during the period Total cost (a) 27900 34600 64800 856330 343735 426740 461340 921130 371635 Equivalent units of production (b) 657950 640750 640750 Cost per equivalent unit (a) (b) 0.72 1.4 0.58