BC Company uses a process cost accounting system. The following information is a

Question

BC Company uses a process cost accounting system. The following information is available regarding direct labor for the current year: complete 8,800 units, 40% complete Goods in process, December 31 Units completed and transferred to finished goods Direct labor costs during the year 46,900 units $266,300 (a) Calculate the equivalent units of production for direct labor for the year using weighted average. (1 point) (b) Calculate the average cost per equivalent unit for direct labor (round to the nearest cent). (1 point) You must show your work for both parts of this problem for credit. You may use the template below for part (a). Hint Average cost per EU for part (b) should be a number between $5.10 and $5.40 Percent of Equivalent its ork Performed Units Units completed Ending goods in process Total e: 4 of 4 Words: 744 SHIBA

Explanation / Answer

Calculate equivalent unit of direct labour :

Average cost per Equivalent unit = 266300/50420 = 5.28 per equivalent unit

Units Percent of work performed Equivalent units Units completed 46900 100% 46900 Ending work in process 8800 40% 3520 Total 55700 50420

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