Question

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.)

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 $ 68,600 Labor $30,000 Overhead $ 48,000 Work in process inventory beginning Units started in process Units transferred out Work in process inventory, ending Cost added during the month Unite 80,000 760,000 790,000 50,000 $ 907,200 $ 370,000 $592,000 The beginning work in process inventory was 80% complete with respect to materials and 75% complete with respect to labor and overhead. The ending work in process inventory was 60% complete with respect to materials and 20% 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) Equivalent unit

	Material	Labor	Overhead
Unit transferred out	790000	790000	790000
Ending WIP	50000*60% = 30000	50000*20% = 10000	10000
Equivalent unit	820000	800000	800000

2) Cost per equivalent unit

	Material	Labor	Overhead
Beginning WIP	68600	30000	48000
Cost added	907200	370000	592000
Total cost	975800	400000	640000
Equivalent unit	820000	800000	800000
Cost per equivalent unit	1.19	0.50	0.80