Pureform, Inc., 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 |
|
$ |
1,380,830 |
$ |
194,530 |
$ |
222,320 |
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:
Assume that the company uses the FIFO method of accounting for units and costs.
1. Compute the equivalent units for the month for the first processing department.
2. Determine the costs per equivalent unit for the month. (Round your answers to 2 decimal places.)