Question

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: Materials $ 102,200 $ Labor 30,100 Overhead $ 42,000 Work in process inventory, beginning Units started in process Units transferred out Work in process inventory, ending Cost added during the month Units 75,000 709,000 730,000 54,000 $1,351,490 $ 371,110 $ 518,180 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 50% 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 1. Equivalent units of production 2. Cost per equivalent unit

Answer 1

1
	Materials	Labor	Overhead
Units transferred out	730000	730000	730000
Work in process inventory, ending:
54000 X 65%	35100
54000 X 50%		27000	27000
Equivalent units of production	765100	757000	757000
2
	Materials	Labor	Overhead
Work in process inventory, beginning	102200	30100	42000
Cost added during the month	1351490	371110	518180
Total costs	1453690	401210	560180
Divide by Equivalent units of production	765100	757000	757000
Cost per Equivalent unit	1.90	0.53	0.74