Holder Incorporated uses the weighted average method for its process costing system. The Assembly Department at began March with 24,000 units in Work in Process (WIP) Inventory, all of which were completed and transferred out during March. An additional 32,000 units were started during the month, 12,000 of which were completed and transferred out during March. A total of 20,000 units remained in WIP Inventory at the end of March, and were at varying levels of completion as follows :

Direct materials: 80 percent complete

Direct labor: 60 percent complete

Overhead:70 percent complete

Cost Information

Beginning Work-in-Process Inventory

Direct materials $ 9,000

Direct labor $ 3,000

Overhead $ 3,200

Costs Incurred during the Period

Direct materials $45,000

Direct labor $14,000

Overhead $16,000

Required:

A. Calculate the equivalent units for direct materials, direct labor, and overhead.

B. Calculate the cost per equivalent unit for direct materials, direct labor, and overhead.

C. What is the cost of the units left in WIP?

D. What is the cost of completed units (transferred out)?

E. Why do companies calculate the EUP?