ABC Inc uses a process cost accounting system. The following information is available regarding direct labor for the current year:

Goods in process, January 1 5,500 units, 80% complete

Goods in process, December 31 8,800 units, 40% complete

Units completed and transferred to

finished goods46,900 units

Direct labor costs during the year $266,300

(a) Calculate the equivalent units of production for direct labor for the year using weighted average. (1 point)

(b) Calculate the average cost per equivalent unit for direct labor (round to the nearest cent).(1 point)

You must show your work for both parts of this problem for credit. You may use the template below for part (a). Hint: Average cost per EU for part (b) should be a number between $5.10 and $5.40.

Percent of Equivalent

Units Work PerformedUnits

Units completed

Ending goods in process

Total

(b) Average cost per equivalent unit =