Exercise $7$

Our Co's packaging department transferred $630$ units to finished goods and its ending WIP

inventory consists of $70$ units which were $70\%$ complete with respect to direct labor $($direct

materials are added at the beginning of the process$).$ Overhead is applied based on direct

labor. Calculate the equivalent units of production.

Exercise $8$

Calculate the cost per equivalent unit of production $($EUP$)$ assuming that beginning WIP

inventory included $$420$ of direct materials, $$1575$ of direct labor, and the predetermined

overhead rate is $160\%.$ During April, Our Co$.$ incurred $$5040$ direct material costs, and $$22050$

direct labor costs. Assume the EUP for direct materials equals $700$ units. EUP for direct labor

and factory overhead equals $679$ units.