Exercise 5S-7 (Algo) Equivalent Units of Production and Cost per Equivalent Unit-FIFO Method [LO 5S-6, LO 5S-7] Pureform, Incorporated, uses the FIFO 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: Work in process inventory, beginning i Units started in process Units transferred out Work in process inventory, ending i Cost added during the month 1. Equivalent units of production 2. Cost per equivalent unit Unita 80,000 762,000 810,000 32,000 $ 1,650,340 $ 392,700 The beginning work in process inventory was 75% complete with respect to materials and 60% complete with respect to labor and overhead. The ending work in process inventory was 55% complete with respect to materials and 25% complete with respect to labor and overhead. Materials Answer is complete but not entirely correct. Overhead 818,000 0.59 $ Required: 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.) 827,600 2.14 Materials $ 122,200 Labor 818,000 0.53 S Labor $ 37,400 Total Overhead $ 50,300 $ 3.26 $431,200
Exercise 5S-7 (Algo) Equivalent Units of Production and Cost per Equivalent Unit-FIFO Method [LO 5S-6, LO 5S-7] Pureform, Incorporated, uses the FIFO 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: Work in process inventory, beginning i Units started in process Units transferred out Work in process inventory, ending i Cost added during the month 1. Equivalent units of production 2. Cost per equivalent unit Unita 80,000 762,000 810,000 32,000 $ 1,650,340 $ 392,700 The beginning work in process inventory was 75% complete with respect to materials and 60% complete with respect to labor and overhead. The ending work in process inventory was 55% complete with respect to materials and 25% complete with respect to labor and overhead. Materials Answer is complete but not entirely correct. Overhead 818,000 0.59 $ Required: 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.) 827,600 2.14 Materials $ 122,200 Labor 818,000 0.53 S Labor $ 37,400 Total Overhead $ 50,300 $ 3.26 $431,200
Chapter1: Financial Statements And Business Decisions
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Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
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![Exercise 5S-7 (Algo) Equivalent Units of Production and Cost per Equivalent Unit-FIFO Method [LO 5S-6,
LO 5S-7]
Pureform, Incorporated, uses the FIFO 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:
Work in process inventory, beginning
Units started in process
Units transferred out
Work in process inventory, ending
Cost added during the month
1. Equivalent units of production
2. Cost per equivalent unit
Units
80,000
762,000
810,000
32,000
$1,650,340
$392,700
The beginning work in process inventory was 75% complete with respect to materials and 60% complete with respect to labor and
overhead. The ending work in process inventory was 55% complete with respect to materials and 25% complete with respect to labor
and overhead.
Materials
Answer is complete but not entirely correct.
Overhead
818,000
0.59
827,600 €
Required:
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.)
2.14 $
Materials
$ 122,200
Labor
818,000
0.53
S
$
Labor
$ 37,400
Total
Overhead
$ 50,300
3.26
$ 431,200](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F94ff5d39-3f2b-4442-8c46-74b0485f4936%2Fdb14d905-e10a-4cbe-be1e-eb2d23af4d26%2Fihvdq7i_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Exercise 5S-7 (Algo) Equivalent Units of Production and Cost per Equivalent Unit-FIFO Method [LO 5S-6,
LO 5S-7]
Pureform, Incorporated, uses the FIFO 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:
Work in process inventory, beginning
Units started in process
Units transferred out
Work in process inventory, ending
Cost added during the month
1. Equivalent units of production
2. Cost per equivalent unit
Units
80,000
762,000
810,000
32,000
$1,650,340
$392,700
The beginning work in process inventory was 75% complete with respect to materials and 60% complete with respect to labor and
overhead. The ending work in process inventory was 55% complete with respect to materials and 25% complete with respect to labor
and overhead.
Materials
Answer is complete but not entirely correct.
Overhead
818,000
0.59
827,600 €
Required:
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.)
2.14 $
Materials
$ 122,200
Labor
818,000
0.53
S
$
Labor
$ 37,400
Total
Overhead
$ 50,300
3.26
$ 431,200
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