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 $ 32,000 $ 52,806 $ 257,175 Cost added during May $ 194,125 $ 35,204 $ 171,450 Equivalent units of production 2,700 2,600 2,500 Required: Compute the cost per equivalent unit for materials, labor, overhead, and in total.

Answer 1

Cost per equivalent unit

Material = $83.75

Labour = $33.85

Overhead WIP = $171.45

Step-by-step explanation:

Materials Labor Overhead Work in process

May 1 $32,000 $52,806 $257,175

Additions during May $194,125 $35,204 $171,450

Total Balance of WIP $226,125 $88010 $428,625

Equivalent units 2,700 2,600 2,500

cost per equivalent unit $83.75 $33.85 $171.45