Chapter 8, Problem 19E

Compute Equivalent Units: FIFO Method

Refer to the data in Exercise 8-18. Assume that beginning inventory is 50 percent complete with respect to materials and 30 percent complete with respect to conversion costs.

Required

1. a.      Compute the equivalent units for materials using FIFO.
2. b.      Compute the equivalent units for conversion costs using FIFO.

8-18 Compute Equivalent Units: Weighted-Average Method

• Conlon Chemicals manufactures paint thinner. Information on the work in process follows:
• Beginning inventory, 30,000 partially complete gallons.
• Transferred out, 157,500 gallons.
• Ending inventory (materials are 10 percent complete; conversion costs are 20 percent complete).
• Started this month, 180,000 gallons.

Required

1. a.      Compute the equivalent units for materials using the weighted-average method.
2. b.      Compute the equivalent units for conversion costs using the weighted-average method.