Chapter 5, Problem 9E

Equivalent Units and Cost per Equivalent Unit-Weighted-Average Method

Pureform, Inc., uses the weighted-average 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:

The beginning work in process inventory was 80% complete with respect to material and 60% complete with respect to labor and overhead. The ending work in process inventory was 75% complete with respect to materials and 50% complete with respect to labor and overhead.

Required:

1. Compute the first department’s equivalent units of production for materials, labor and overhead for the month.
2. Determine the first department’s cost per equivalent unit for material, labor, and overhead for the month.