Nano Company Uses a Weighted Average Process Cost System

question 83

Essay

Nano Company uses a weighted average process cost system. The department started and finished 149,000 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.

---

Definitions:

Apparent Agency

A situation where a principal appears to the public to have granted authority to an agent, even if no actual authority was granted.

Expressed Agency

A legal relationship where an agent has the explicit authorization by the principal to act on their behalf.

Agency by Ratification

The process where a principal approves and legitimizes the unauthorized acts done by an agent on their behalf, thereby giving these actions full legal effect.

Liability

Legal responsibility for one's actions or omissions, which may result in the obligation to pay damages or perform specific actions.