A company uses a process cost accounting system and the weighted average method for inventory costs. The following information is available regarding direct labour for the current year:
Goods in process, January 1 5500 units, 80 % complete
Goods in process, December31 8800 units, 40% complete
Units completed and transferred to finished goods 46900 units
Direct labour costs during the year 266,300
(a) Calculate the equivalent units of production for direct labour for the year.
(b) Calculate the average cost per equivalent unit for direct labour (round to the nearest cent).