A company uses a process costing system. Its Assembly Department\'s beginning in

Question

A company uses a process costing system. Its Assembly Department's beginning inventory consisted of 55,200 units, 3/4 complete with respect to direct labor and overhead. The department completed and transferred out 114,500 units this period. The ending inventory consists of 45,200 units that are 1/4 complete with respect to direct labor and overhead. All direct materials are added at the beginning of the process. The department incurred direct labor costs of $37,000 and overhead costs of $45,000 for the period. Assuming the weighted average method, the direct labor cost per equivalent unit (rounded to the nearest cent) is

Explanation / Answer

Answer: Completed and transferred out=114500

            EGIP (45200*1/4)                   =11300

           Total EUP's                            =125800

Cost/EUP

=($37000/125800)=$0.29/EUP

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