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 1. Equivalent units of production 2. Cost per equivalent unit Units 73,000 689,000 710,000 52,000 Materials Materials $ 57,100 $ 475,440 The beginning work in process inventory was 75% complete for materials and 60% complete for labor and overhead. The ending work in process inventory was 55% complete for materials and 25% 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. Labor $ 1,230,930 Overhead Labor $ 27,700 $441,480 Total Overhead $ 39,000

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
icon
Concept explainers
Topic Video
Question

Please do not give solution in image format thanku 

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
1. Equivalent units of production
2. Cost per equivalent unit
Units
73,000
689,000
710,000
52,000
Materials
Materials
$ 57,100
$441,480
$ 475,440
The beginning work in process inventory was 75% complete for materials and 60% complete for labor and overhead. The ending work
in process inventory was 55% complete for materials and 25% 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.
Labor
$ 1,230,930
Overhead
Labor
$ 27,700
Total
Overhead
$ 39,000
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 1. Equivalent units of production 2. Cost per equivalent unit Units 73,000 689,000 710,000 52,000 Materials Materials $ 57,100 $441,480 $ 475,440 The beginning work in process inventory was 75% complete for materials and 60% complete for labor and overhead. The ending work in process inventory was 55% complete for materials and 25% 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. Labor $ 1,230,930 Overhead Labor $ 27,700 Total Overhead $ 39,000
Expert Solution
steps

Step by step

Solved in 4 steps

Blurred answer
Knowledge Booster
Costing Systems
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education