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Question: Refer to the information in Exercise to compute the number of equivalent units with respect to both materials used and labor used in the production department for April using the FIFO method.
Exercise: The production department described in Exercise 20-8 had $531,480 of direct materials and $407,689 of direct labor cost charged to it during April. Also, its beginning inventory included $74,075 of direct materials cost and $28,493 of direct labor.
1. Compute the direct materials cost and the direct labor cost per equivalent unit for the department.
2. Using the weighted-average method, assign April's costs to the department's output-specifically, its units transferred to finished goods and its ending goods in process inventory.
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