Giga Company Uses a Weighted Average Process Cost System

question 175

Essay

Giga Company uses a weighted average process cost system.The department started and finished 129,000 units during the current period.The ending inventory consists of 60,000 units that are 75% complete with respect to direct labor and overhead.All direct materials are added at the beginning of the process.The department incurred direct labor costs of $262,500 and overhead costs of $126,000.
(a)Compute the equivalent cost per unit for direct labor.
(b)Compute the equivalent cost per unit for overhead.