Pureform, Inc., manufactures a product that passes through two departments. Data
ID: 2501476 • Letter: P
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 50% complete with respect to labor and overhead.
Compute the equivalent units for the month for the first processing department.
Determine the costs per equivalent unit for the month. (Round your answers to 2 decimal places.)
Pureform, Inc., 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 70,000 $ 61,100 $ 26,300 $ 37,500 Units started in process 669,000 Units transferred out 690,000 Work in process inventory, ending 49,000 Cost added during the month $ 1,124,210 $ 271,420 $ 304,520The 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 50% complete with respect to labor and overhead.
Required: Assume that the company uses the FIFO method of accounting for units and costs.
1.
Compute the equivalent units for the month for the first processing department.
Materials Labor Overhead Equivalent units of productionExplanation / Answer
Answer:1
Answer:2
Particulars units Material % Labor % overhead % Units transferred out 690000 690000 100 690000 100 690000 100 Ending WIP 49000 34300 70 24500 50 24500 50 Equivalent units of production 724300 714500 714500Related Questions
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