Pureform, Inc., uses the weighted-average method in its process costing system.

Question

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:

The beginning work in process inventory was 75% complete with respect to materials and 60% complete with respect to labor and overhead. The ending work in process inventory was 55% complete with respect to materials and 25% 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.)

Units Materials Labor Overhead Work in process inventory, beginning 80,000 $ 122,200 $ 37,400 $ 50,300 Units started in process 762,000 Units transferred out 810,000 Work in process inventory, ending 32,000 Cost added during the month $ 1,615,760 $ 461,580 $ 620,460

Explanation / Answer

Equivalent unit :

2. Determine the first department's cost per equivalent unit for materials, labor, and overhead for the month.

Physical unit % EUP-material % EUP-conversion Units completed 810000 100% 810000 100% 810000 Ending work in process 32000 55% 17600 25% 8000 Total 842000 827600 818000

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