Problem
Murray Chemical Company refines a variety of petrochemical products. These data are from the firm's Houston plant:
Work-in-process inventory, September 1 4,560,000 gallons
Direct materials 50% completed
Conversion 20% completed
Units started in process during September 5,500,000 gallons
Work-in-process inventory, September 30 3,300,000 gallons
Direct materials 40% completed
Conversion 60% completed
Required:
a. Compute the equivalent units of direct materials and conversion for the month of September using the weighted-average method.
b. Compute the equivalent units of direct materials and conversion for the month of September using the FIFO method.