Equivalent Units Equivalent Units Direct Materials Labor and Overhead Beginning
ID: 2562452 • Letter: E
Question
Equivalent Units
Equivalent Units
Direct Materials
Labor and Overhead
Beginning WIP
0
1,500
Units started and
Completed
18,000
18,000
Ending WIP
2,000
1,600
Total
20,000
21,100
Refer to Figure 1. Assume beginning work-in-process costs from the prior month total $13,000 and that current month costs for direct materials, direct labor, and factory overhead total $18,000, $8,000, and $10,000 respectively. Department Z’s cost per equivalent unit of production for the combined direct labor and overhead costs using the FIFO method would be
A. $1.18
B. $1.02
C. $.12
D. $.73
E. $.85
Equivalent Units
Equivalent Units
Direct Materials
Labor and Overhead
Beginning WIP
0
1,500
Units started and
Completed
18,000
18,000
Ending WIP
2,000
1,600
Total
20,000
21,100
Explanation / Answer
E. $.85 Statement of Equivalent production Particulars Equivalent mat Equivalent Conv = Labour + O/H Opening WIP - 1,500.00 Units started and completed(5000-1500) 18,000.00 18,000.00 ending WIP 2,000.00 1,600.00 Equivalent Units 20,000.00 21,100.00 Current Month Costs 18,000.00 18,000.00 Cost per Equivalent units 0.90 0.85
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