Compute Equivalent Units
Bears, Inc., adds materials at the beginning of the process in Department MO. The following information on physical units for Department MO for the month of July is available:
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Work in process, July 1 (75% complete with respect to conversion) .
|
27,000
|
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Started in July
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180,000
|
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Completed
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180,000
|
|
Work in process, July 30 (60% complete with respect to conversion)
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27,000
|
Required
a. Compute the equivalent units for materials costs and for conversion costs using the weighted-average method.
b. Compute the equivalent units for materials costs and for conversion costs using the FIFO method.