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, beginning 5,000 $4,320 $1,040 $1,790
Units started in process 45,000
Units transferred out 42,000
Work in process, ending 8,000
Cost added during the month $52,800 $21,500 $32,250



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.

Required:
Assume that the company uses the weighted-average method of accounting for units and costs.

(a) Compute the equivalent units for the month for the first department.

Materials Labor Overhead
Equivalent units of production ? ? ?



(b) Determine the costs per equivalent unit for the month. (Round your answers to 2 decimal places. Omit the "$" sign in your response.)

Materials Labor Overhead
Cost per equivalent unit $ ? $ ? $ ?

Explanation:

(a) Compute the equivalent units for the month for the first department.

*Ending work in process units (materials) = Ending work in process inventory*Percentage completed = 8,000*0.75 = 6,000 units

Units transferred out = 42,000

Ending work in process = 6,000

(a2)

Ending work in process units (labor) = Ending work in process inventory*Percentage completed = 8,000*0.50 = 4,000

(a3)

Ending work in process units = Ending work in process inventory*Percentage completed = 8,000*0.50 = 4,000

(b1) Determine the costs per equivalent unit for the month

With respect to materials:

Total cost = beginning work in process + cost added during year = 4320 + 52,800 = $57,120

Cost per equivalent units = Total cost/ Equivalent units of production = 57,120/48,000 = 1.19

(b2) With respect to labor:

Total cost = beginning work in process + cost added during year = 1040 + 21,500 = $22,540

Cost per equivalent units = Total cost/ Equivalent units of production = 22,540/46,000 = 0.49

(b3) With respect to overhead:

Total cost = beginning work in process + cost added during year = 1790 + 32,250 = $34,040

Cost per equivalent units = Total cost/ Equivalent units of production = 34,040/46,000 = 0.74

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