Problem:
A company uses the weighted average method for inventory costing. During a period, a production department had 42,000 units in beginning goods in process inventory which were 39% complete; the department completed and transferred 174,000 units. At the end of the period, 21,000 units were in the ending goods in process inventory and are 74% complete. All of these are with respect to labor. The production department had labor costs in the beginning goods is process inventory of $96,000 and total labor costs added during the period are $726,775.
Required:
Question 1: Compute the equivalent cost per unit for labor.
Note: Show all workings.