LO.2 (Cost per WA EUP) In October 2010, Rojo Inc.'s production was 53,600 equiva- lent units for direct material, 48,800 equivalent units for direct labor, and 42,000 equiv- alent units for overhead. During October, direct material, conversion, and overhead costs incurred were as follows: Direct material Conversion Overhead $158,688 189,648 85,200 Beginning WIP Inventory costs for October were $26,232 for direct material, $39,024 for direct labor, and $20,640 for overhead. a. How much did Rojo Inc. spend on direct labor in October? b. What was the October weighted average cost per equivalent unit for direct material, direct labor, and overhead?

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LO.2 (Cost per WA EUP) In October 2010, Rojo Inc.'s production was 53,600 equiva-
lent units for direct material, 48,800 equivalent units for direct labor, and 42,000 equiv-
alent units for overhead. During October, direct material, conversion, and overhead
costs incurred were as follows:
Direct material
Conversion
Overhead
$158,688
189,648
85,200
Beginning WIP Inventory costs for October were $26,232 for direct material, $39,024
for direct labor, and $20,640 for overhead.
a. How much did Rojo Inc. spend on direct labor in October?
b. What was the October weighted average cost per equivalent unit for direct material,
direct labor, and overhead?
Transcribed Image Text:LO.2 (Cost per WA EUP) In October 2010, Rojo Inc.'s production was 53,600 equiva- lent units for direct material, 48,800 equivalent units for direct labor, and 42,000 equiv- alent units for overhead. During October, direct material, conversion, and overhead costs incurred were as follows: Direct material Conversion Overhead $158,688 189,648 85,200 Beginning WIP Inventory costs for October were $26,232 for direct material, $39,024 for direct labor, and $20,640 for overhead. a. How much did Rojo Inc. spend on direct labor in October? b. What was the October weighted average cost per equivalent unit for direct material, direct labor, and overhead?
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But the answer appears 19,504 in the Direct Labor. How did that happen? Can you make a solution for this? 

LO.2 (Cost per WA EUP) In October 2010, Rojo Inc.'s production was 53,600 equivalent units for direct material,
48,800 equivalent units for direct labor, and 42,000 equivalent units for overhead. During October, direct material,
conversion, and overhead costs incurred were as follows:
Direct material
Conversion
Overhead
Beginning WIP Inventory costs for October were $26,232 for direct material, $39,024 for direct labor, and $20,640 for
overhead.
a.
b.
How much did Rojo Inc. spend on direct labor in October?
What was the October weighted average cost per equivalent unit for direct material, direct labor, and
overhead?
24. a. DL cost = Conversion cost - OH cost = $189,648 - $85,200 = $104,448
b.
DM
$26,232
DL
$19,504
Beginning WIP Inventory
Current period
$158,688
189,648
85,200
Total costs
Divided by EUP
Cost per EUP
158,688
$184,920
+53,600
$3.45
104,448
$123,952
+ 48,800
$2.54
Overhead
$20,640
85,200
$105,840
+ 42,000
$2.52
Transcribed Image Text:LO.2 (Cost per WA EUP) In October 2010, Rojo Inc.'s production was 53,600 equivalent units for direct material, 48,800 equivalent units for direct labor, and 42,000 equivalent units for overhead. During October, direct material, conversion, and overhead costs incurred were as follows: Direct material Conversion Overhead Beginning WIP Inventory costs for October were $26,232 for direct material, $39,024 for direct labor, and $20,640 for overhead. a. b. How much did Rojo Inc. spend on direct labor in October? What was the October weighted average cost per equivalent unit for direct material, direct labor, and overhead? 24. a. DL cost = Conversion cost - OH cost = $189,648 - $85,200 = $104,448 b. DM $26,232 DL $19,504 Beginning WIP Inventory Current period $158,688 189,648 85,200 Total costs Divided by EUP Cost per EUP 158,688 $184,920 +53,600 $3.45 104,448 $123,952 + 48,800 $2.54 Overhead $20,640 85,200 $105,840 + 42,000 $2.52
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