Answered Essay: ring April, the production department of a process manufacturing system completed a number o

During April, the production department of a process manufacturing system completed a number of units of a product and transferred them to finished goods. Of these transferred units, 54,000 were in process in the production department at the beginning of April and 290,000 were started and completed in April. April’s beginning inventory units were 70% complete with respect to materials and 30% complete with respect to labor. At the end of April, 70,000 additional units were in process in the production department and were 60% complete with respect to materials and 20% complete with respect to labor.
The production department had $700,000 of direct materials and $600,000 of direct labor cost charged to it during April. Also, its beginning inventory included $90,000 of direct materials cost and $30,000 of direct labor.


1&2. Using the weighted-average method, compute the direct materials cost and the direct labor cost per equivalent unit and assign April’s costs to the department’s output. (Round “Cost per EUP” to 2 decimal places.)

Expert Answer



Whole unit % Material % Direct labour
Unit transfered out


344000 100% 344000 100% 344000
Ending Inventory 70000 60% 42000 20% 14000
Total 414000 386000 358000


Beginning work in process 90000 30000
Cost added during april 700000 600000
Total cost 790000 630000
Equivalent unit 386000 358000
Cost per equivalent unit 2.05 1.76


April ‘s output = (2.05+1.76)*344000 = 1310640

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