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: Units Materials Labor Overhead Work in process inventory,- beginning 79,000 $99,000 $34,200 $46,700 Units started in process 749,000 Units transferred out 770,000 Work in process inventory,-ending 58,000 Cost added during the month $1,309,400 $421,230 $ 576,520 The beginning work in process inventory was 80% complete with respect to materials and 65% complete with respect to labor and overhead. The ending work in process inventory was 60% complete with respect to materials and 50% complete with respect to labor and overhead. 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.)

Respuesta :

Answer:

EU materials 804,800

EU conversion 779,000

Cost per EU materials 1.75

conversion 1.35

Explanation:

For weighted average method, we do complete and trasnferred-out plus percentage of completion on ending inventory

Equivalent units:

Materials:

770,000 + 58,000 x 60%  =  804,800

Conversion cost:

770,000 + 58,000 x 50%  =  799,000

Now, we add up each concept beginning WIP inventory and the cost of the period and divide over the equivalent units:

Cost per Equivalent units:

Materials:

( 99,000 + 1,309,400 )  / 804,800 = 1.75

Conversion cost:

( 34,200 + 46,700 + 421,230 + 576,520 )  /  799,000 = 1.35