Problem
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
|
75,000
|
$ 102,200
|
$ 30,100
|
$ 42,000
|
|
Units started in process
|
709,000
|
|
|
|
|
Units transferred out
|
730,000
|
|
|
|
|
Work in process inventory, ending
|
54,000
|
|
|
|
|
Cost added during the month
|
|
$1,351,490
|
$ 371,110
|
$ 518,180
|
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 50% complete with respect to labor and overhead.
Required:
Assume that the company uses the weighted-average method of accounting for units and costs.
1. Compute the equivalent units for the month for the first department.
2. Determine the costs per equivalent unit for the month.