Pureform, Incorporated, uses the FIFO method of process costing. It manufactures a product passing 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 Units 71,000 Materials $ 61,700 Labor $ 26,800 Overhead $ 38,100 679,000 700,000 50,000 $ 1,181,775 $ 608,355 $ 811,140 The beginning work in process inventory was 70% complete for materials and 55% complete for labor and overhead. The ending work in process inventory was 50% complete for materials and 30% complete for labor and overhead. 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. Note: Round your answers to 2 decimal places. 1. Equivalent units of production 2. Cost per equivalent unit Materials Labor Overhead Total
Pureform, Incorporated, uses the FIFO method of process costing. It manufactures a product passing 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 Units 71,000 Materials $ 61,700 Labor $ 26,800 Overhead $ 38,100 679,000 700,000 50,000 $ 1,181,775 $ 608,355 $ 811,140 The beginning work in process inventory was 70% complete for materials and 55% complete for labor and overhead. The ending work in process inventory was 50% complete for materials and 30% complete for labor and overhead. 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. Note: Round your answers to 2 decimal places. 1. Equivalent units of production 2. Cost per equivalent unit Materials Labor Overhead Total
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Pureform, Incorporated, uses the FIFO method of process costing. It manufactures a product passing 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
Units
71,000
Materials
$ 61,700
Labor
$ 26,800
Overhead
$ 38,100
679,000
700,000
50,000
$ 1,181,775
$ 608,355 $ 811,140
The beginning work in process inventory was 70% complete for materials and 55% complete for labor and overhead. The ending work
in process inventory was 50% complete for materials and 30% complete for labor and overhead.
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.
Note: Round your answers to 2 decimal places.
1. Equivalent units of production
2. Cost per equivalent unit
Materials
Labor
Overhead
Total
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