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 $22,300 $35,694 $173,247
Cost added during May $135,305 $23,796 $115,498
Equivalent units of production 1,900 1,800 1,700

Required:
a. Compute the cost per equivalent unit for materials, for labor, and for overhead. (Round your answers to 2 decimal places.)
b. Compute the total cost per equivalent whole unit.

Answer 1

Materials Labor Overhead

Work in process, May 1 $22,300 $35,694 $173,247

Cost added during May $135,305 $23,796 $115,498

Total $157,605 $59,490 $288,745

a. Compute the cost per equivalent unit for materials, for labor, and for overhead. (Round your answers to 2 decimal places.)

Materials cost per EUP = $157,605 / 1,900 = $82.95

Labor cost per EUP = $59,490 / 1,800 = $33.05

Overhead cost per EUP = $288,745 / 1,700 = $169.85

b. Compute the total cost per equivalent whole unit.

total cost per EUP = $82.95 + $33.05 + $169.85 = $285.85