Question

Chapter 4 Exercises A 4 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: 20 Units Materials Labor Overhead points Work in process inventory, beginning Units started in $ 1,040 $ 1,790 5,000 $ 4,320 45,000 process Units transferred out eBook 42,000 Work in process inventory, ending Cost added during the month 8,000 Hint $52,800 $21,500 $32,250 Print The beginning work in process inventory was 80% complete with respect to materials and 60% complete with respect to labor and overhead. The ending work in process inventory was 75% complete with respect to materials and 50% complete with respect to labor and overhead. References 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 to 2 decimal places.) Materials Labor Overhead Equivalent units of 1. production Cost per equivalent 2. unit

Answer 1

Solution

		Material	Labor	Overhead
1	Equivalent units of production	48,000	46,000	46,000
2	Cost per Equivalent unit	$                    1.19	$                   0.49	$                  0.74

Working

Statement of Equivalent Units(Weighted average)
		Material		Labor		Overhead
	Units			Complete %	Equivalent units	Complete %	Equivalent units
Transferred	42,000	100%	42,000.0	100%	42,000.0	100%	42,000
Closing WIP	8,000	75%	6,000.0	50%	4,000.0	50%	4,000
Total	50,000		48,000	Total	46,000.0	Total	46,000

.

	Material	Labor	Overhead
Work in process beginning (A)	$           4,320.00	$          1,040.00	$         1,790.00
Cost added during may (B)	$         52,800.00	$        21,500.00	$       32,250.00
Total Cost (C=A+B)	$         57,120.00	$        22,540.00	$       34,040.00
Equivalent units of production (D)	48,000	46,000.0	46,000
Cost per Equivalent unit (C/D)	$                    1.19	$                   0.49	$                  0.74