Question:
Compute Equivalent Units: FIFO Method
Materials are added at the beginning of the production process at Santiago Company, which uses a FIFO process costing system. The following information on the physical flow of units is available for the month of April: Cost data for April show the following:
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Beginning WIP inventory
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|
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Direct materials costs
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$ 24,300
|
|
Conversion costs
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38,700
|
|
Current period costs
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|
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Direct materials costs
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$ 280,950
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|
Conversion costs
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1,079,550
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Required
a. Compute the cost equivalent units for the conversion cost calculation assuming Santiago uses the weighted-average method.
b. Compute the cost per equivalent unit for materials and conversion costs for April.