Answer:
$ 3.7167
Explanation:
Given:
Number of goods completed and finished = 78,000 units
Additional units produced = 9000
Number of units completed from the additional units = 65% of the units produced
i.e 0.65 × 9000 = 5,850 units
therefore, the total units completed = 78,000 + 5,850 = 83,850 units
Labor cost for the beginning inventory = $ 21,650
Direct labor cost = $ 290,000
Therefore, the total labor cost = $ 21,650 + $ 290,000 = $ 311,650
thus,
Direct Labor Cost per Unit = ( Total labor cost ) / ( Total completed Units )
or
Direct Labor Cost per Unit = $ 311,650 / 83,850 = $ 3.7167 / unit
Hence,
<u>the direct labor cost per equivalent unit for the department = $ 3.7167</u>
