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Pablo Company calculates the cost for an equivalent unit of production using process costing. Data for June Work-in-process inventory, June 1: 20,000 units Direct materials:
Pablo Company calculates the cost for an equivalent unit of production using process costing.
Data for June | |||||||||
Work-in-process inventory, June 1: 20,000 units | |||||||||
Direct materials: 100% complete | $ | 40,000 | |||||||
Conversion: 40% complete | 16,000 | ||||||||
Balance in work-in-process, June 1 | $ | 56,000 | |||||||
Units started during June | 48,000 | ||||||||
Units completed and transferred out | 48,000 | ||||||||
Work-in-process inventory, June 30 | 20,000 | ||||||||
Direct materials: 100% complete | |||||||||
Conversion: 80% complete | |||||||||
Costs incurred during June | |||||||||
Direct materials | $ | 129,600 | |||||||
Conversion costs | |||||||||
Direct labor | 129,600 | ||||||||
Applied overhead | 168,000 | ||||||||
Total conversion costs | $ | 297,600 | |||||||
Required:
1. Compute the cost per equivalent unit for both the weighted-average and FIFO methods. (Round your answers to 3 decimal places.)
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