Chapter 4.A, Problem 7E

EXERCISE 4A-7 Equivalent Units of Production and Cost per Equivalent Unit-FIFO Method LO4-6, L04-7

Refer to the data for Pureform, Inc., in Exercise 4-9.

Required:

Assume that the company uses the FTO method in its process costing system.

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.