Giga Company Uses a Weighted Average Process Cost System

question 119

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.

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Definitions:

Hypothermia Blanket

A medical device used to lower a patient's body temperature, often for therapeutic purposes or to preserve neurological function after certain types of injury.

Shiver

An involuntary body response involving rapid, rhythmic muscle contractions to generate heat when feeling cold.

Dry Heat

A method of sterilization or therapy that uses hot air or an open flame, without the presence of moisture.

Penetrates Tissue

Refers to a substance or device that enters or passes through bodily tissue.