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 71,000 \$ 61,700 \$ 26,800 \$ 38,100 Units started in the process 679,000 Units transferred out 700,000 Work in process inventory, ending 50,000 Cost added during the month \$ 815,550 \$ 330,700 \$ 469,550

The beginning work in process inventory was 70% complete with respect to materials and 55% complete with respect to labor and overhead. The ending work in process inventory was 50% complete with respect to materials and 30% 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.)

#### Homework Answers

Answer #1

1) Equivalent unit of production

 Material Labor Overhead Unit transferred out 700000 700000 700000 Ending WIP 50000*50% = 25000 50000*30% = 15000 15000 Equivalent unit 725000 715000 715000

2) Cost per equivalent unit

 Material Labor Overhead Beginning WIP 61700 26800 38100 Cost added 815550 330700 469550 Total Cost 877250 357500 507650 Equivalent unit 725000 715000 715000 Cost per equivalent unit 1.21 0.50 0.71
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