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 70,000 $ 61,100 $ 26,300 $ 37,500 Units started in process 669,000 Units transferred out 690,000 Work in process inventory, ending 49,000 Cost added during the month $ 808,060 $ 323,805 $ 462,650
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.
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 1 Equivalent units of production 2 Cost per equivalent unit
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 | 70,000 | $ | 61,100 | $ | 26,300 | $ | 37,500 |
| Units started in process | 669,000 | ||||||
| Units transferred out | 690,000 | ||||||
| Work in process inventory, ending | 49,000 | ||||||
| Cost added during the month | $ | 808,060 | $ | 323,805 | $ | 462,650 | |
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.
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 | ||
| 1 | Equivalent units of production | |||
| 2 | Cost per equivalent unit |
Related questions
Please explain!
Pureform, Inc., manufactures a product that passes through twodepartments. Data for a recent month for the first departmentfollow: |
| Units | Materials | Labor | Overhead | ||||
| Work inprocess inventory, beginning | 63,000 | $ | 54,400 | $ | 22,100 | $ | 26,900 |
| Units started inprocess | 599,000 | ||||||
| Units transferredout | 620,000 | ||||||
| Work in processinventory, ending | 42,000 | ||||||
| Cost added duringthe month | $ | 802,980 | $ | 360,030 | $ | 420,035 | |
The beginning work in process inventory was 80% complete withrespect to materials and 65% complete with respect to labor andoverhead. The ending work in process inventory was 60% completewith respect to materials and 50% complete with respect to laborand overhead. |
| Required: |
| Assume that the company uses theFIFO method of accounting for units and costs. |
| 1. | Compute the equivalent units for the month for the firstprocessing department. Materials Labor Overhead |
| 2. | Determine the costs per equivalent unit for the month.(Round your answers to 2 decimal places.) Materials Labor Overhead |
