Pureform, Inc., uses the weighted-average method in its process costing system. It manufactures a product that...

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Accounting

Pureform, Inc., uses the weighted-average method in its processcosting system. It manufactures a product that passes through twodepartments. Data for a recent month for the first departmentfollow:
Units Materials Labor Overhead
Work in process inventory, beginning 64,000 $ 64,800 $ 27,900 $ 34,600
Units started in process 609,000
Units transferred out 630,000
Work in process inventory, ending 43,000
Cost added during the month $ 1,321,774 $ 417,165 $ 357,570
The beginning work in process inventory was 85% complete withrespect to materials and 70% complete with respect to labor andoverhead. The ending work in process inventory was 65% completewith respect to materials and 25% complete with respect to laborand overhead.
Required:
Assume that the company uses the FIFO method in its processcosting system.
1. Compute the first department's equivalent units of productionfor materials, labor, and overhead for the month.
2. Compute the first department's cost per equivalent unit formaterials, labor, overhead, and in total for the month.(Round your answers to 2 decimal places.)

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3.7 Ratings (538 Votes)

STEP 1 Reconciliation of Units Units already completed completed this period completed this period Material Labor Overhead Material Labor Overhead Beginning WIP 64000 85 70 70 15 30 30 Units introduced 609000 Total units to be See Answer

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	Units	Materials		Labor		Overhead
Work in process inventory, beginning	64,000	$	64,800	$	27,900	$	34,600
Units started in process	609,000
Units transferred out	630,000
Work in process inventory, ending	43,000
Cost added during the month		$	1,321,774	$	417,165	$	357,570