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Superior Micro Products uses the weighted-average method in its process costing system. Data for the Assembly Department for May appear below: Materials Labor Overhead Work in process, May 1 $ 36,900 $ 61,650 $ 299,715 Cost added during May $ 223,965 $ 41,100 $ 199,810 Equivalent units of production 3,100 3,000 2,900 Compute the cost per equivalent unit for materials, labor, overhead, and in total.

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Answer

(a) cost per equivalent unit

Item                                Material         Labour      Overheads

Cost per EU($)           84.15         34.25      172.25

b) Total cost per equivalent = $290.65

Explanation:

The weighted average method of valuation of work in progress does not separate opening work-in progress from the newly introduced.

The cost per equivalent units using  this method is computed by dividing the total equivalent units by the cost element. This repeated for each of cost element categories.

Item                                Material         Labour      Overheads

Opening WIP                  36,900          61,650           299,715

Cost added                    223,965          41,100          199,810

Total cost($)     a             260,865   102,750     499,525

Equivalent unit  b             3,100             3,000            2,900

Cost per EU($) (a/b)         84.15         34.25      172.25

Total cost per equivalent unit =   84.15 + 34.25 + 172.25

Total cost per equivalent=  $290.65

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