Superior Micro Products uses the weighted-average method in its process costing system. During January, the Delta Assembly Department completed its processing of 25,000 units and transferred them to the next department. The cost of beginning inventory and the costs added during January amounted to 599,780 in total. The ending inventory in January consisted of 3,000 units, which were 80% complete with respect to materials and 60% complete with respect to labor and overhead. The costs per equivalent unit for the month were as follows:
Materials Labor Overhead Cost per equivalent unit .................... $12.50 $3.20 $6.40
(a) Compute the equivalent units of materials, labor, and overhead in the ending inventory for the month.

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23-08-2022
Business

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Superior Micro Products uses the weighted-average method in its process costing system. During January, the Delta Assembly Department completed its processing of 25,000 units and transferred them to the next department. The cost of beginning inventory and the costs added during January amounted to 599,780 in total. The ending inventory in January consisted of 3,000 units, which were 80% complete with respect to materials and 60% complete with respect to labor and overhead. The costs per equivalent unit for the month were as follows:
Materials Labor Overhead Cost per equivalent unit .................... $12.50 $3.20 $6.40
(a) Compute the equivalent units of materials, labor, and overhead in the ending inventory for the month.

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rafikiedu09 rafikiedu09 · Answer 1 · 2022-08-29T06:21:31+02:00

The equivalent units of material is 2080, labor is 1560 and overhead is 1560.

What are equivalent units of materials, labor, and overhead ?

Equivalent units describe how important work has been done on a certain number of physical particulars.

To simply calculate Equivalent units, you can multiply the number of physical particulars by the chance of the work done on them. For two particulars that are 50 done, you would have one original unit ( 2 x 50 = 1).

Process going requires incompletely completed units in ending work- in- process force to be converted to the original completed units( called original units).

Equivalent units are calculated by multiplying the number of physical ( or factual) units on hand by the chance of completion of the units.

The whole unit is 2600,

and,

material = 80%, that is 2080

labor = 60%, that is 1560

overhead = 60%, that is 1560.

So, The equivalent units of material is 2080, labor is 1560 and overhead is 1560.

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