Pureform, Inc., manufactures a product that passes through two departments. Data

Question

Pureform, Inc., manufactures a product that passes through two departments. Data for a recent month for the first department follow: UnitsMaterialsILaboOverhead 34,200 S46,700 Work in process inventory, beginning 79,000 $ 99,000 Units started in process Units transferred out 749,000 770,000 58,000 Work in process inventory, ending Cost added during the month 1,297,800 $523,355 $598,120 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: 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 production 2. Determine the costs per equivalent unit for the month. (Round your answers to 2 decimal places.) Materials Labor Overhead Cost per equivalent unit

Explanation / Answer

Materials Labor Overhead Work in Process, beginning 15800 27650 27650 Units started and completed 691000 691000 691000 Work in Process, Ending 34800 29000 29000 Equivalent units of production 741600 747650 747650 Materials Labor Overhead Current costs 1297800 523355 598120 Equivalent units of production 741600 747650 747650 Cost per Equivalent unit 1.75 0.7 0.8

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