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.         Work in process, August 1 (59% complete with respect to conversion) 16,000   Started in August 119,400   Completed 119,400   Work in process, August 31 (75% complete with respect to conversion) 16,000       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 FIF

Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter6: Process Costing
Section: Chapter Questions
Problem 16E: Heap Company manufactures a product that passes through two processes: Fabrication and Assembly. The...
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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.

 

     
Work in process, August 1 (59% complete with respect to conversion) 16,000  
Started in August 119,400  
Completed 119,400  
Work in process, August 31 (75% complete with respect to conversion) 16,000  
 

 

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.

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