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 $61,100 Labor $ 26,300S Overhead 37,500 Work in process inventory, beginning Units started in process Units transferred out Work in process inventory, ending Cost added during the month Units 70,000 669,000 690,000 49,000 $ 808,060 $ 323,805 $ 462, 650 The beginning work in process Inventory was 90% complete with respect to materials and 75% complete with respect to labor and overhead. The ending work in process inventory was 70% 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 is complete but not entirely correct. Materials Labor Overhead Equivalent units of production 714,500 702,250 702,250Ⓡ Cost per equivalent unit $ 1.21 $ 0.50 $ 0.71 2. < Prev 2 of 4 Score answer >

Answer 1

1) Equivalent unit

	Material	Labor	Overhead
Unit transferred out	690000	690000	690000
Ending WIP	49000*70% = 34300	49000*50% = 24500	24500
Equivalent unit	724300	714500	714500

2) Cost per equivalent unit

	Material	Labor	Overhead
Beginning WIP	61100	26300	37500
Cost added	808060	323805	462650
Total cost	869160	350105	500150
equivalent unit	724300	714500	714500
Cost per equivalent unit	1.20	0.49	0.70