Department Z of BILMOKO, Inc. uses the average cost method, and the departments production data for May
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Question:
Department Z of BILMOKO, Inc. uses the average cost method, and the department’s production data for May 1999 was as follows:
Opening work in process (50% complete) 2,000 units
Placed in the process during the month 20,000 units
Closing work in process (60% complete) 2,500 units
Direct labor cost in the opening work in process was P60,000 while direct labor cost added during the month was P780,000. The direct labor cost per equivalent unit is:
P40
37.5
30
34.5
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