Exercise 7 Our Co's packaging department transferred 630 units to finished goods and...

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Accounting

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.
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