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		Labor		Overhead
Work in process inventory, beginning	5,000	$	4,320	$	1,040	$	1,790
Units started in process	45,000
Units transferred out	42,000
Work in process inventory, ending	8,000
Cost added during the month		$	52,800	$	21,500	$	32,250

The beginning work in process inventory was 80% complete with respect to materials and 60% complete with respect to labor and overhead. The ending work in process inventory was 75% 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.)

Answer 1

1)

	Material	Labor	Overhead
Units completed and transferred out	42000	42000	42000
Ending work in process inventory	8000*75%=6000	8000*50%=4000	4000
equivalent units of production	48000	46000	46000

2)

	Material	Labor	Overhead
Beginning work in process	4320	1040	1790
Current period cost	52800	21500	32250
Total cost [A]	57120	22540	34040
equivalent units of production [B]	48000	46000	46000
Cost per equivalent unit [A/B]	1.19	.49	.74