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Question - Rovira 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
5,000
$4,320
$1,040
$1,790
Units started in process
45,000
Units transferred out
42,000
Work in process inventory, ending
8,000
Cost added during the month
$52,800
$21,500
$32,250
The beginning work in process inventory was 80% complete with respect to materials and 60% complete with respect to labor and overhead. The ending work in process inventory was 75% complete with respect to materials and 50% complete with respect to labor and overhead.
Assume that the company uses the weighted-average method of accounting for units and costs.
Required -
1. Compute the equivalent units for the month for the first department.
2. Determine the costs per equivalent unit for the month.
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