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:
|
Beginning WIP inventory |
|
|
Direct materials costs |
$ 24,300 |
|
Conversion costs |
38,700 |
|
Current period costs |
|
|
Direct materials costs |
$ 280,950 |
|
Conversion costs |
1,079,550 |
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.