Refer to the data for Kalox, Inc., in Exercise 4€“6.
In Exercise 4€“6, Kalox, Inc., manufactures an antacid product that passes through two departments. Data for May for the first department follow:

The beginning work in process inventory was 80% complete with respect to materials and 75% complete with respect to labor and overhead. The ending work in process inventory was 60% complete with respect to materials and 20% complete with respect to labor and overhead.

Required:
Assume that the company uses the FIFO method of accounting for units and costs.
1. Compute the equivalent units for May€™s activity for the first processing department.
2. Determine the costs per equivalent unit forMay.

Transcribed Image Text:

Gallons Materials Labor Overhead Work in process, May 1 80,000 $68,600 $30,000 Gallons started in process.760,000 Gallons transferred out Work in process, May 31 50,000 Cost added during May $48,000 790,000 $907,200 $370,000 $592,000