Homework SoursePureform Inc manufactures a product that passes through two
Pureform, Inc., manufactures a product that passes through two departments. Data for a recent month for the first department follow: Units Materials Labor Overhead 64,000 $ Work in process inventory, beginning Units started in process Units transferred out Work in process inventory, ending Cost added during the month 64,800 S 27,900 S 34,600 609,000 630,000 43,000 $ 856,330 $ 343,735 $426,740 The beginning work in process inventory was 85% complete with respect to materials and 70% comple with respect to labor and overhead. The ending work in process inventory was 65% complete with respe to materials and 25% complete with respect to labor and overhead Required Assume that the company uses the weighted-average method of accounting for units and costs 1. Compute the equivalent units for the month for the first department. Materials Labor Overhead Equivalent units of production 640,750 2. Determine the costs per equivaent unit for the month. (Round your answers to 2 decimal places.) Materials Labor Overhead Cost per equivalent unit 
Solution
1) Materials Labor Overhead Equivalent units of production 6,57,950 6,40,750 6,40,750 Working: Materials Labor Overhead Physical Units % of completion Equivalent units of production % of completion Equivalent units of production % of completion Equivalent units of production Units completed 6,30,000 100% 6,30,000 100% 6,30,000 100% 6,30,000 Units in ending work in process 43,000 65% 27,950 25% 10,750 25% 10,750 Total 6,73,000 6,57,950 6,40,750 6,40,750 2) Materials Labor Overhead Cost per Equivalent unit $ 1.40 $ 0.58 $ 0.72 Working: Materials Labor Overhead Cost of work in process inventory,beginning $ 64,800 $ 27,900 $ 34,600 Cost added during the month $ 8,56,330 $ 3,43,735 $ 4,26,740 Total Costs $ 9,21,130 $ 3,71,635 $ 4,61,340 / Equivalent units of production 6,57,950 6,40,750 6,40,750 Cost per Equivalent unit $ 1.40 $ 0.58 $ 0.72