Equivalent Units and Cost per Equivalent Unit—Weighted-Average Method


Kalox, Inc., manufactures an antacid product that passes through two departments. Data for May for the first department follow:

Gallons Materials Labor Overhead
Work in process, May 1 80,000 $ 68,600 $ 30,000 $ 48,000
Gallons started in process 760,000
Gallons transferred out 790,000
Work in process, May 31 50,000
Cost added during May $ 907,200 $ 370,000 $ 592,000
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The beginning work in process inventory was 80% complete with respect to materials and 75% complete with respect to labor and overhead. The ending work in process inventory was 60% complete with respect to materials and 20% complete with respect to labor and overhead.

Required:
Assume that the company uses the weighted-average method of accounting for units and costs.
(a) Compute the equivalent units for May's activity for the first department.

Materials Labor overhead
Equivalent units of production
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(b) Determine the costs per equivalent unit for May. (Round your answers to 2 decimal places. Omit the "$" sign in your response.)

Materials Labor Overhead
Cost per equivalent unit $ $ $
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