Question

Superior Micro Products uses the weighted-average method in its process costing system. Data for the Assembly Department for May appear below: Materials Labor Overhead Work in process, May 1 $ 32,000 $ 52,806 $ 257,175 Cost added during May $ 194,125 $ 35,204 $ 171,450 Equivalent units of production 2,700 2,600 2,500 Required: Compute the cost per equivalent unit for materials, labor, overhead, and in total.

Answer 1

Answer:

Cost per equivalent unit

Material = $83.75

Labour = $33.85

Overhead WIP = $171.45

Explanation:

                                   Materials       Labor        Overhead Work in process

May 1                           $32,000       $52,806               $257,175

Additions during May $194,125      $35,204                $171,450

Total Balance of WIP  $226,125     $88010                 $428,625

Equivalent units               2,700         2,600                    2,500

cost per equivalent unit $83.75      $33.85                   $171.45