Pureform, Inc., uses the weighted-average method in its process costing system.
ID: 2612003 • Letter: P
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:
Units Materials Labor Overhead
Work in process inventory, Beginning 60,000 $ 67,300 $ 11,400 $21,000
Units started in process 569,000
Units transferred out 590,000
Work in process inventory, ending 39,000
Cost added during the month $889,515 $ 140,975 $ 259,370.
The beginning work in process inventory was 90% complete with respect to materials and 75% complete with respect to labor and overhead. The ending work in process inventory was 70% complete with respect to materials and 50% 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.
Materials Labor Overhead
Equalvent units of production
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.)
Materials Labor Overhead
Cost per equalvent unit
Explanation / Answer
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.)
Physical unit % material % Labour % Overhead Unit transferred out 590000 100% 590000 100% 590000 100% 590000 Ending work in process 39000 70% 27300 50% 19500 50% 19500 Total Equivalent unit 617300 609500 609500Related Questions
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