Pureform, Inc., uses the weighted-average method in its process costing system.

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 Units Materials Labor Overhead Work in process inventory, beginning 61,000 $49,700 10,60024,300 Units started in procesS Units transferred out Work in proceas inventory, ending Cost added during the month 579, 000 600, 000 40,000 ok 657,100 130,160 300, 060 The beginning work in process inventory was 70% complete with respect to materials and 55% complete with respect to labor and overhead. The ending work in process inventory was 50% complete with respect to materials and 30% complete with respect to lat nces 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 t decimal places.) Materials Labor Overhead 1. Equivalent units of production 2. Cost per equivalent unit

Explanation / Answer

Particulars Materials Labour Overhead Equivalent Units of production     620,000.00     612,000.00     612,000.00 Cost per Equivalent units                  1.14                  0.23                  0.53 Statement of Equivalent production Particulars Direct Materials %completion Equivalent mat Labour %completion Equivalent Labour Overhead %completion Equivalent Overhead Opening WIP       61,000.00 100%       61,000.00       61,000.00 100%       61,000.00       61,000.00 100%       61,000.00 Units started and completed = 600,000 - 61,000     539,000.00 100%     539,000.00     539,000.00 100%     539,000.00     539,000.00 100%     539,000.00 ending WIP       40,000.00 50%       20,000.00       40,000.00 30%       12,000.00       40,000.00 30%       12,000.00 Equivalent Units of production     620,000.00     612,000.00     612,000.00 Opening WIP Costs       49,700.00       10,600.00       24,300.00 Current Month Costs     657,100.00     130,160.00     300,060.00 Total costs     706,800.00     140,760.00     324,360.00 Cost per Equivalent units                  1.14                  0.23                  0.53

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