Answer:
Part 1
The first department's equivalent units :
Materials = 649,600 units
Labor = 635,200 units
Overheads = 635,200 units
Part 2
The first department's cost per equivalent unit :
Materials = $1.50
Labor = $0.12
Overheads = $0.45
Explanation:
It is important to note that the weighted-average method is being used in Pureform, Inc process costing system.
This method focuses on the units completed and transferred and units in closing work in process to calculate the equivalent units of production.
The total cost on which to base the unit cost comprises of cost in Opening Work In Process and the Manufacturing cost incurred during the production period
<u>The first department's equivalent units</u>
<em>Equivalent units = Units Completed and transferred + Units in Closing Work in Process × Percentage of Completion</em>
Therefore,
Materials = 610,000 + 72,000 × 55% = 649,600 units
Labor = 610,000 + 72,000 × 35% = 635,200 units
Overheads = 610,000 + 72,000 × 35% = 635,200 units
<u>The first department's cost per equivalent unit for materials, labor, and overhead</u>
<em>Cost per equivalent unit = Total Cost ÷ Total Equivalent Units</em>
Therefore,
Materials = ($ 68,500 + $ 905,900) ÷ 649,600 units
= $1.50
Labor = ($ 5,700 + $ 70,524) ÷ 635,200 units
= $0.12
Overheads = ($ 21,400 + $ 264,440) ÷ 649,600 units
= $0.45
