Magic Company adds materials at the beginning of the process in Department A. Th

Question

Magic Company adds materials at the beginning of the process in Department A. The following information on physical units for Department A for the month of August is available:

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.

Work in process, August 1 (56% complete with respect to conversion) 16,300 Started in August 118,400 Completed 118,400 Work in process, August 31 (76% complete with respect to conversion) 16,300

Explanation / Answer

a Direct materials Conversion Units completed and transferred 118400 118400 Work in process, August 31 16300 12388 Equivalent units 134700 130788 b Direct materials Conversion Work in process, August 1 0 7172 Units started and completed 102100 102100 Work in process, August 31 16300 12388 Equivalent units 118400 114488

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