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 $14,550 $23,620 $118,100
Cost added during May $88,350 $14,330 $71,650
Equivalent units of production 1,200 1,100 1,100

Required:
Compute the cost per equivalent unit for materials, labor, overhead, and in total.

Answer 1

Answer:

Cost per Equivalent units

$85.75 $34.50 $172.50 $292.75

Explanation:

Computation for the cost per equivalent unit for materials, labor, overhead, and in total

Materials Labor Overhead

Work in process, May 1 $14,550 $23,620 $118,100

Cost added during May $88,350 $14,330 $71,650

Total (a) $102,900 $37,950 $189,750

Equivalent units of production (b) 1,200 1,100 1,100

Cost per Equivalent units (a/b)

$85.75 $34.50 $172.50 $292.75

Therefore the cost per equivalent unit are:

Materials =$85.75

Labor = $34.50

Overhead =$172.50

Total = $292.75