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: Units Materials 67,000 62,600 23,200 33,700 Labor Overhead Work in process inventory, beginning Units started in process Units transferred out Work in process inventory, ending Cost added during the month 639,000 660,000 46,000 $828,290 285,690 416,205 The beginning work in process inventory was 70% complete with respect to materials and 55% complete with respect to labor and overhead. The ending work in process inventory was 55% 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 1. Equivalent units of production 2. Cost per equivalent unit

Answer 1

Answers

• All working forms part of the answer
• Requirement 1

Statement of Equivalent Units
		Material		Labor		Overhead
	Units	Complete %	Equivalent units	Complete %	Equivalent units	Complete %	Equivalent units
Transferred	660,000	100%	660,000	100%	660,000	100%	660,000
Closing WIP	46,000	55%	25,300	25%	11,500	25%	11,500
		Total	685,300 = Answer	Total	671,500 = Answer	Total	671,500 = Answer

• Requirement 2

Cost per Equivalent Units
COST	Material	Labor	Overhead	TOTAL
Beginning WIP Inventory Cost	$             62,600.00	$          23,200.00	$              33,700.00	$          119,500.00
Cost incurred during period	$          828,290.00	$        285,690.00	$            416,205.00	$      1,530,185.00
Total Cost to be accounted for	$          890,890.00	$        308,890.00	$            449,905.00	$      1,649,685.00
Total Equivalent Units	685,300	671,500	671,500
Cost per Equivalent Units	$                   1.30 = Answer	$                0.46 = Answer	$                    0.67 = Answer