Nano Company Uses a Process Cost System and the Weighted-Average

question 22

Essay

Nano Company uses a process cost system and the weighted-average inventory valuation method.The Nano Assembly Department's beginning inventory consisted of 40,000 units that were three-fifths complete with respect to direct labor and overhead.The department started and finished 149,000 units with respect to direct labor and overhead.The ending inventory consists of 60,000 units that are three-fourths complete with respect to direct labor and overhead.All direct materials are added at the beginning of the process.The department Goods in Process account included direct labor costs of $292,500 and overhead costs of $140,400.
(a) What is the direct labor cost per equivalent unit?
(b) What is the overhead cost per equivalent unit?

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Definitions:

Warranty

A guarantee, typically by a seller to a buyer, assuring certain facts or conditions about goods or services.

Authority

The power or right, usually backed by law, to give orders, make decisions, and enforce obedience.

Banquet Cancellation

The act of calling off or terminating a planned banquet event, typically due to unforeseen circumstances or breach of contract.

Accounting Firm

A business that provides services related to financial record keeping, audit, and taxation.