A Company Uses a Process Costing System and the Weighted

question 156

Essay

A company uses a process costing system and the weighted average method for inventory costs. The following information is available regarding direct $\begin{array} { l c } \text { Work in Process, January } 1 & 5,500 \text { units, } 80 \% \text { complete } \\\text { Work in Process, December } 31 & 8,800 \text { units, } 40 \% \text { complete } \\\text { Units completed and transferred to } & \\\text { finished goods } & 46,900 \text { units } \\\text { Direct labor costs during the year } & \$ 266,300\end{array}$
(a) Calculate the equivalent units of production for direct labor for the year.
(b) Calculate the average cost per equivalent unit for direct labor (round to the nearest cent).

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Definitions:

Endocrine System

A network of glands in the body that produce and secrete hormones directly into the bloodstream to regulate vital processes, including growth, metabolism, and reproduction.

Pituitary Gland

A small, pea-sized gland located at the base of the brain, crucial for controlling growth, metabolism, and the activity of other glands.

Adrenal Gland

An organ located above the kidneys that produces hormones such as adrenaline and cortisol, which regulate stress response.

Thyroid Gland

An endocrine gland in the neck that produces hormones primarily responsible for regulating metabolism and energy use in the body.