Pureform, Inc., manufactures a product that passes through two departments. Data

Question

  

Pureform, Inc., manufactures a product that passes through two departments. Data for a recent month for the first department follow:

  

The beginning work in process inventory was 90% complete with respect to materials and 75% complete with respect to labor and overhead. The ending work in process inventory was 70% complete with respect to materials and 10% complete with respect to labor and overhead.

     

     

Compute the equivalent units for the month for the first department.

Equivalent units of production

Materials Labor Overhead

Determine the costs per equivalent unit for the month. (Round your answers to 2 decimal places.)

costs per equivalent unit

Materials Labor Overhead

2. Determine the costs per equivalent unit for the month. (Round your answers to 2 decimal places.)

Explanation / Answer

1& 2 : The equivalent units and cost per equivalent for the month for the first department:

Units Particulars Material Labor Overhead 76000 Opening Work in process 76000 7600 (10%) 19000 (25%) 19000 (25%) 719000 Units introduced and completed 664000 664000(100%) 664000(100%) 664000(100%) Closing Work in process 55000 38500 (70%) 5500 (10%) 5500 (10%) Solution 1 total equivalent units 710100 688500 688500 Cost added during the month $904725 $372370 $517225 Solution 2 costs per equivalent unit for the month $1.27 $0.54 $0.75

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