Question

Pureform, Inc., uses the FIFO 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 $ 54,400 Labor 22,100 Overhead S 26,900 S Work in process inventory, beginning Units started in process Units transferred out Work in process inventory, ending Cost added during the month Units 63,000 599,000 620,000 42,000 $ 802,980 $ 360,030 $ 420,035 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 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. Compute the first department's cost per equivalent unit for materials, labor, overhead, and in total for the month. (Round your answers to 2 decimal places.) Materials Labor Overhead Total 1. Equivalent units of production 2. Cost per equivalent unit

Answer 1

Answers

• Requirement 1

	Materials	Labor	Overhead
Equivalent units	594800	600050	600050

EUP - FIFO Method	Units	% Material	EUP Materials	% Conversion	EUP - Conversion
Units of ENDING WIP	42,000	60.0%	25,200	50.0%	21,000
Units STARTED & COMPLETED	557,000	100%	557,000	100%	557,000
Units of beginning WIP	63,000	20.00%	12,600	35%	22,050
Equivalent Units of Production			594,800		600,050

• Requirement 2

	Materials	Labor	Overhead	Total
Cost per Equivalent units	$ 1.35	$ 0.60	$ 0.7	$ 2.65

COST per EUP			Material	Labor	Overhead
Cost incurred this period			$       802,980.00	$                  360,030.00	$                  420,035.00
Total Costs		Costs	$       802,980.00	$                  360,030.00	$                  420,035.00
Equivalent units of production		EUP	594,800	600,050	600,050
Cost per EUP			$                1.3500	$                          0.6000	$                          0.7000