Question 3 (of 5) value 14.00 points Pureform, Inc., manufactures a product that

Question

Question 3 (of 5) value 14.00 points Pureform, Inc., manufactures a product that passes through two departments. Data for a recent month for the first department follow Units Materials Labor Overhead 84,400 $ 42,200 Work in process inventory, beginning 87,000 829,000 850,000 66,000 55,900 Units started in process Units transferred out Work in process inventory, ending Cost added during the month $1,116,480 $521,025 $ 689,290 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 25% 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 the month for the first department. Materials Labor Equivalent units of production 883,000 2. Determine the costs per equivalent unit for the month. (Round your answers to 2 decimal places.) Materials Labor Overhead Cost per equivalent unit 1.36

Explanation / Answer

1 Physical Units Material Equivalent units Labor completion % Equivalent units Overhead Completion % Equivalent units Units completed and transferred out 850000 100% 850000 100% 850000 100% 850000 Units in ending WIP inventory 66000 50% 33000 25% 16500 25% 16500 883000 866500 866500 2 Material Labor Overhead Equivalent units 883000 866500 866500 Material Labor Overhead Cost of opening inventory $84,400 $42,200 $55,900 Cost incurred during the period (In $) $1,116,480 $521,025 $689,290 Total cost $1,200,880 $563,225 $745,190 Equivalent units 883000 866500 866500 Cost per Equivalent unit $1.36 $0.65 $0.86

Related Questions

Navigate

• Browse (All)
• Browse Q
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.