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 |
66,000 |
$ |
54,800 |
$ |
22,400 |
$ |
32,800 |
| Gallons started in process |
629,000 |
|
|
|
|
|
|
| Gallons transferred out |
650,000 |
|
|
|
|
|
|
| Work in process, May 31 |
45,000 |
|
|
|
|
|
|
| Cost added during May |
|
$ |
725,300 |
$ |
276,175 |
$ |
405,110 |
|
|
The beginning work in process inventory was 70% complete with respect to materials and 55% complete with respect to labor and overhead. The ending work in process inventory was 50% complete with respect to materials and 30% complete with respect to labor and overhead.
|
| Required: |
| Assume that the company uses the weighted-average method of accounting for units and costs. |
| 1. |
Compute the equivalent units for May's activity for the first department.
|
| 2. |
Determine the costs per equivalent unit for May. (Round your answers to 2 decimal places.) |