A product is manufactured in a continuous process carried on successively in two departments, Assembly and Finishing. In the production process, materials are added to the product in each department without increasing the number of units produced.

For July Year 2 the production records contain the following information for each department:

Required Determine the cost per equivalent unit for each department.

Transcribed Image Text:

Units in process at 1 July Units commenced in Assembly Units completed and transferred out Units in process at 31 July Cost of materials () Cost of labour () Cost of production overhead () Percentage completion of units in process: Materials Labour and overhead Assembly 80,000 60,000 20,000 240,000 140,000 65,000 100% 50% Finishing 50,000 10,000 88,500 141,500 56,600 100% 70%