Pureform, Inc., uses the weighted-average method in its process costing system. It manufactures a product...
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Accounting
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
97,000
$
101,200
$
54,300
$
69,600
Units started in process
918,000
Units transferred out
940,000
Work in process inventory, ending
75,000
Cost added during the month
$
1,674,620
$
850,465
$
995,225
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.)
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