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goldenfox [79]
3 years ago
8

A company uses a process costing system. its assembly department's beginning inventory consisted of 52,400 units, 75% complete w

ith respect to direct labor and overhead. the direct labor beginning inventory costs were $9,500. the department completed and transferred out 121,500 units this period. the ending inventory consists of 42,400 units that are 25% complete with respect to direct labor and overhead. all direct materials are added at the beginning of the process. the department incurred direct labor costs of $30,000 and overhead costs of $38,000 for the period. assuming the weighted average method, the direct labor cost per equivalent unit (rounded to the nearest cent) is:
Business
1 answer:
zalisa [80]3 years ago
5 0
Total transferred units = 121,500 
Direct labor costs = $30,000
 Completed unit from the ending inventory = 42,400 x 25% = 10600
 Now the total units transferred = 121,500 + 10600 = 132100
 Direct labor cost per equivalent unit = Direct labor costs / total units transferred
  = 30,000 / 132100 = 0.227
 Direct labor cost per equivalent unit = 0.23.
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