Question

# Pureform, Inc., uses the weighted-average method in its process costing system. It manufactures a product that...

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 91,000 \$ 92,400 \$ 47,900 \$ 62,400 Units started in process 869,000 Units transferred out 890,000 Work in process inventory, ending 70,000 Cost added during the month \$ 1,628,490 \$ 479,780 \$ 531,185

The beginning work in process inventory was 90% complete with respect to materials and 75% complete with respect to labor and overhead. The ending work in process inventory was 70% complete with respect to materials and 50% complete with respect to labor and overhead.

Required:

Assume that the company uses the FIFO method in its process costing system.

1. Compute the first department's equivalent units of production for materials, labor, and overhead for the month.

2. Compute the first department's cost per equivalent unit for materials, labor, overhead, and in total for the month. (Round your answers to 2 decimal places.)

1. Compute the first department's equivalent units of production for materials, labor, and overhead for the month.

 Physical unit % material % labour % Overhead Beginning work in process 91000 10% 9100 25% 22750 25% 22750 Unit started & Completed 799000 100% 799000 100% 799000 100% 799000 Ending work in process 70000 70% 49000 50% 35000 50% 35000 Total equivalent unit 857100 856750 856750

2. Compute the first department's cost per equivalent unit for materials, labor, overhead, and in total for the month.

 Material Labour Overhead Total Cost added during period 1628490 479780 531185 Equivalent unit 857100 856750 856750 Cost per equivalent unit 1.90 0.56 0.62 3.08

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