Question

In: Accounting

Compute the cost per equivalent unit for materials, for labour, for overhead, and in total.

Ainsley Industries uses the weighted-average method in its process costing system. Data for the Assembly Department for May appear below:

 

  Materials Labour Overhead
Work in process, May 1 $28,000 $22,000 $117,500
Cost added during May $52,000 $18,500 $63,600
Equivalent units of production 1,500 800 1,200

 

Required

Compute the cost per equivalent unit for materials, for labour, for overhead, and in total.

Solutions

Expert Solution

Weighted-Average Method

Costs per Equivalent Unit:

 

 

  Total Cost Materials Labour Overhead
Work in process, May 1 $167,500 $28,000 $22,000 $117,500
Cost added during May $134,100 $52,000 $18,500 $63,600
Total cost (a) $301,600 $80,000 $40,500 $181,100
         
Equivalent units of
production (b)		   1,500 800 1,200
Cost per equivalent unit
(a) ÷ (b		   $53 $51 $151

 

Total cost per equivalent Unit = $53.33 + $50.63 + $150.92 = $254.88

The total cost per equivalent unit is $254.88.

Renze Joy Candido answered 2 years ago
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