1. Compute the equivalent production for overhead for March.
2. Compute the cost per equivalent unit for overhead for March.
3. Compute the cost of overhead in the goods transferred out.
4. Compute the cost of overhead in the ending work in process inventory.
The cutting department is the first department of the Sneaker Maker, LLC. On March 1, 2016, the beginning inventory in this department consisted of 700 units. Costs for the beginning work in process were as follows:
Materials (100% complete).........................$7,000
Labor (60% complete) ...............................5,000
Overhead (60% complete) ...........................4,000
During March 2016, 2,900 units were started into production with the following costs:
Materials.........................$34,400
Labor..............................17,000
Overhead.........................17,228
The number of units completed and sent to the finishing department was 3,000. The ending inventory of 600 units were 100 percent complete in regard to materials, 70 percent complete with regard to labor and overhead.