Department Z of BILMOKO, Inc. uses the average cost method, and the department’s production data for May 1999 was as follows:

Opening work in process (50% complete) 2,000 units

Placed in the process during the month 20,000 units

Closing work in process (60% complete) 2,500 units

Direct labor cost in the opening work in process was P60,000 while direct labor cost added during the month was P780,000. The direct labor cost per equivalent unit is:

P40

37.5

30

34.5

Answer rating: 100% (QA)

Calculation of Units Completed and transferred A Opening Work in Process 2000 ... View the full answer