ABC Inc. uses a process cost accounting system. The following information is available regarding direct labor for the current year: Goods in process, January 1 Goods in process, December 31 Units completed and transferred to finished goods Direct labor costs during the year 5,500 units, 80% complete 8,800 complete units, 40% 46,900 units $266,300 (a) Calculate the equivalent units of production for direct labor for the year using a weighted average. (b) Calculate the average cost per equivalent unit for direct labor (round to the nearest cent).

ABC Inc. uses a process cost accounting system. The following information is available regarding direct labor for the current year: Goods in process, January 1 Goods in process, December 31 Units completed and transferred to finished goods Direct labor costs during the year 5,500 units, 80% complete 8,800 complete units, 40% 46,900 units $266,300 (a) Calculate the equivalent units of production for direct labor for the year using a weighted average. (b) Calculate the average cost per equivalent unit for direct labor (round to the nearest cent).

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter4: Activity-based Costing

Section: Chapter Questions

Problem 25E: Cushing, Inc., costs products using a normal costing system. The following data are available for...

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