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, beginning 85,000 $67,900 $30,800 $48,400
Units started in process 748,000
Units transferred out 787,000
Work in process, ending 46,000
Cost added during the month $906,200 $368,800 $593,200
The beginning work in process inventory was 77% complete with respect to materials and 78% complete with respect to labor and overhead. The ending work in process inventory was 61% complete with respect to materials and 18% 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.
Materials Labor Overhead
Equivalent units of production
2. Determine the costs per equivalent unit for the month.