Question

Exercise 4-9 Equivalent Units and Cost per Equivalent Unit-Weighted-Average Method [L04-2, L04-3] 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 86,000 $ 70,200 $ 39,600 $ 53,000 inventory, beginning Units started in process 814,000 Units transferred out 820,000 Work in process 80,000 inventory, ending Cost added during the $928,000 $488,640 $654,160 month The beginning work in process inventory was 80% complete with respect to materials and 65% complete with respect to labor and overhead. The ending work in process inventory was 60% complete with respect to materials and 40% 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

Answer 1

1 Equivalent units of production Units % Material EUP-Material % Labor EUP - Labor % Overhead EUP - Overhead 100% Units to be accounted for:- Units Completed & transferred out Units of Ending work in Process Equivalent units of production 820000 80000 900000 100% 40% Add 820000 48000 868000 100% 40% 60% 820000 32000 852000 820000 32000 852000 2 Cost Per EUP Cost of Beginning work in process Cost incurred this period Total Cost Equivalent units of productiom Cost per Equivalent unit Add Material $ 70,200 $ $ 928,000 $ $ 998,200 $ 868000 $ 1.15$ Labor Overhead 39,600 $ 53,000 $ 488.640 s $ 654.160 $ 528,240 $ 707, 160 $ 852000 852000 0.62 $ 0.83 Total 162,800 2.070.800 2,233,600 Divide