units               conversion                                                                                  percentage complete beginning work in process inventory  10,000                       20% units started                                          21,000 units completed and transferred out    26,000 Ending work in processs inventory          5,000                     80% The conversion cost of the beginning inventory was $6,500. During the month, $112,000 in additional conversion cost was incurred. Required: a) Assume that the company uses the FIFO method. Compute the following: 1. The equivalent units of production for conversion for the month. 2. The cost per equivalent unit for conversion for the month. 3. The total cost transferred out during the month. 4. The cost assigned to the ending work-in-process inventory.  b) Assume that the company uses the weighted-average cost method. Compute the following: 1. The equivalent units of production for conversion for the month. 2. The cost per equivalent unit for conversion for the month. 3. The total cost transferred out during the month. 4. The cost assigned to the ending work-in-process inventory.

Question

                                                           units               conversion                                                                                  percentage complete

beginning work in process inventory  10,000                       20%

units started                                          21,000

units completed and transferred out    26,000

Ending work in processs inventory          5,000                     80%

The conversion cost of the beginning inventory was $6,500. During the month, $112,000 in additional conversion cost was incurred.

Required:

a) Assume that the company uses the FIFO method. Compute the following:

1. The equivalent units of production for conversion for the month. 
2. The cost per equivalent unit for conversion for the month. 
3. The total cost transferred out during the month. 
4. The cost assigned to the ending work-in-process inventory. 

b) Assume that the company uses the weighted-average cost method. Compute the following:

1. The equivalent units of production for conversion for the month. 
2. The cost per equivalent unit for conversion for the month. 
3. The total cost transferred out during the month. 
4. The cost assigned to the ending work-in-process inventory. 

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