Final answer:
To calculate the cost per equivalent unit, divide the total cost by the total equivalent units of production. For each category (materials, labor, overhead, and total), divide the cost added during May by the equivalent units of production. Using the weighted-average method, we can calculate the cost per equivalent unit for materials, labor, overhead, and in total.
Step-by-step explanation:
To compute the cost per equivalent unit for materials, labor, overhead, and in total, we will use the weighted-average method. The cost per equivalent unit is calculated by dividing the total cost (materials, labor, or overhead) by the total equivalent units of production. Here's how to calculate the cost per equivalent unit:
- Materials: Cost added during May / Equivalent units of production for materials
- Labor: Cost added during May / Equivalent units of production for labor
- Overhead: Cost added during May / Equivalent units of production for overhead
- Total: Cost added during May / Total equivalent units of production
Using the given data, let's calculate the cost per equivalent unit for each category:
- Materials: $238,900 / 35,000 equivalent units of production = $6.83 per unit
- Labor: $80,300 / 33,000 equivalent units of production = $2.43 per unit
- Overhead: $401,500 / 33,000 equivalent units of production = $12.16 per unit
- Total: ($238,900 + $80,300 + $401,500) / 33,000 equivalent units of production = $18.61 per unit
Complete question:
Superior Micro Products uses the weighted-average method in its process costing system. Data for the Assembly Department for May appear below: Materials Labor Overhead Work in process, May 1 $ 18,000 $ 5,500 $ 27,500 Cost added during May $ 238,900 $ 80,300 $ 401,500 Equivalent units of production 35,000 33,000 33,000 Required: Compute the cost per equivalent unit for materials, labor, overhead, and in total. (Round your answers to 2 decimal places.)