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Question - ABC Inc uses a process cost accounting system. The following information is available regarding direct labor for the current year:
Goods in process, January 1 5,500 units, 80% complete
Goods in process, December 31 8,800 units, 40% complete
Units completed and transferred to finished goods 46,900 units
Direct labor costs during the year $266,300
(a) Calculate the equivalent units of production for direct labor for the year using weighted average.
(b) Calculate the average cost per equivalent unit for direct labor (round to the nearest cent).
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