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 59,000 $ 61,600 $ 15,700 $ 29,100
Units started in process 559,000
Units transferred out 580,000
Work in process inventory, ending 38,000
Cost added during the month $ 815,215 $ 193,285 $ 359,015
The beginning work in process inventory was 85% complete with respect to materials and 70% complete with respect to labor and overhead. The ending work in process inventory was 65% complete with respect to materials and 45% 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

Answer 1

Answer and Explanation:

1. The computation of the first department's equivalent units of production for materials, labor, and overhead for the month is shown below with the help of below formulas

Material equivalent units of production

= Units completed and transferred out + Ending work in process in units

Labor equivalent units of production

= Units completed and transferred out + Ending work in process in units

Equivalent units of production

= Units completed and transferred out + Ending work in process in units

2. The computation of the second part is done by using the spreadsheet. Kindly find it below