A company uses a process cost accounting system and the weighted average method for inventory costs.
The following information is available regarding direct labor for the current year:
1. Goods in process, January 1 5500 units, 80 % complete
2. Goods in process, December 31 8800 units, 40% complete
3. Units completed and transferred to finished goods 46900 units
4. Direct labor costs during the year 266,300
(a) Calculate the equivalent units of production for direct labor for the year.
(b) Calculate the average cost per equivalent unit for direct labor (round to the nearest cent).