Question

during january, the production department of a process operations system completed and transferred to finished goods a total of 71,000 units. at the end of january, 14,000 additional units were in process in the production department and were 45% complete with respect to labor. the beginning inventory included labor cost of $40,100 and the production department incurred direct labor cost of $318,300 during january. compute the direct labor cost per equivalent unit for the department using the weighted-average method.

Answer 1

Answer: $4.64

Step-by-step explanation:

The following can be gotten from the question:

The Calculation of equivalent Units will be:

Completed and transfered to Finished Goods = 71000

WIP - 14000 Units at 45% Complete in Labour = 45% × 14000 = 6300

Total = 71000 + 6300 = 77300

Calculation of Labour Expenses

Labour Expenses = 40100

Incurred During January = 318300

Total = 358400

Direct Labour Cost per equivalent Unit will be the Total labour Expenses divided by Total Equivalent Units

= 358400/77300

= $4.64