Reference no: EM131805745

Problem

Pureform, Inc., manufactures a product that passes through two departments. Data for a recent month for the first department follow:

	Units	Materials	Labor	Overhead
Work in process inventory, beginning	75,000	$ 102,200	$ 30,100	$ 42,000
Units started in process	709,000
Units transferred out	730,000
Work in process inventory, ending	54,000
Cost added during the month		$1,351,490	$ 371,110	$ 518,180

The beginning work in process inventory was 85% complete with respect to materials and 70% complete with respect to labor and overhead. The ending work in process inventory was 65% complete with respect to materials and 50% 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.
2. Determine the costs per equivalent unit for the month.