Chapter 4 Q7

Pureform, Inc., manufactures a product that passes through two departments. Data for a recent month for the first department follow:

	Units	Materials		Labor		Overhead
Work in process inventory, beginning	69,000	$	82,500	$	24,900	$	35,800
Units started in process	659,000
Units transferred out	680,000
Work in process inventory, ending	48,000
Cost added during the month		$	1,044,080	$	160,925	$	482,775

The beginning work in process inventory was 85% complete with respect to materials and 70% complete with respect to labor and overhead. The ending work in process inventory was 65% complete with respect to materials and 25% complete with respect to labor and overhead.

Required:

Assume that the company uses the FIFO method of accounting for units and costs.

1a.	Compute the equivalent units for the month for the first processing department.

	Materials	Labor	Overhead
Equivalent units of production

1b.

Determine the costs per equivalent unit for the month. (Round your answers to 2 decimal places.)

	Materials	Labor	Overhead
Cost per equivalent unit