Question

BeGone manufactures spray cans of insect repellent. On August 1, the company had 9,800 units in the beginning WIP Inventory that were 100 percent complete as to canisters, 60 percent complete as to other materials, 40 percent complete as to direct labor, and 20 percent complete as to overhead. During August, BeGone started 81,500 units in the manufacturing process. Ending WIP Inventory included 4,600 units that were 100 percent complete as to canisters, 40 percent complete as to other materials, 20 percent complete as to direct labor, and 10 percent complete as to overhead. Cost information for the month is as follows:

Beginning WIP Inventory
Canisters	$6,535
Other direct materials	6,174
Direct labor	5,594
Overhead	1,070
August costs
Canisters	$61,940
Other direct materials	86,793
Direct labor	82,026
Overhead	160,176

Prepare a schedule showing the BeGone August computation of weighted average equivalent units of production and cost per equivalent unit.
Note: Round the cost per equivalent unit amounts to two decimal places.

1. Weighted average equivalent units of production

	Canisters	Other Materials	DL	OH
Beginning WIP Inventory
Started & completed
EI
EUP

2. Schedule of cost per equivalent units of production

	Canisters	Other Materials	DL	OH	Total
Beginning WIP
Current period
Total cost
Divided by EUP
Cost per EUP

Answer 1

(1)

	Canisters	Other Materials	DL	OH
Beginnig WIP Inventory	9800	9800	9800	9800
Started & completed	76900	76900	76900	76900
EI	4600	1840	920	460
EUP	91300	88540	87620	87160

(2)

	Canisters	Other Materials	DL	OH	Total
Beginning WIP	$   6,535	$            6,174	$ 5,594	$     1,070	$   19,373
Current period	$ 61,940	$          86,793	$82,026	$1,60,176	$3,90,935
Total cost	$ 68,475	$          92,967	$87,620	$1,61,246	$4,10,308
Divided by EUP	91300	88540	87620	87160
Cost per EUP	$     0.75	$              1.05	$    1.00	$      1.85	$         4.65