Equivalent Units and Cost per Equivalent Unit—Weighted-Average Method
Kalox, Inc., manufactures an antacid product that passes through two departments. Data for May for the first department follow:
| Gallons | Materials | Labor | Overhead |
Work in process, May 1 | 80,000 | $68,600 | $30,000 | $48,000 |
Gallons started in process .... | 760,000 |
| ||
Gallons transferred out | 790,000 | |||
Work in process, May 31 | 50,000 | |||
Cost added during May |
| $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:
Assume that the company uses the weighted-average method of accounting for units and costs.
1. Compute the equivalent units for May's activity for the first department.
2. Determine the costs per equivalent unit for May.
We need at least 10 more requests to produce the solution.
0 / 10 have requested this problem solution
The more requests, the faster the answer.