Problem:
Mack Company has following info available for November:
BEG work in Process Inventory
(25% complete as to conversion) 10,000 units
Started 120,000 units
Ending Work in process inventory
(30% complete as to conversion) 30,000 units
Beginning Work in Process Inventory Costs:
MATERIAL $2,100
CONVERSION $2,030
Current period Costs:
MATERIAL $33,000
CONVERSION $109,695
All material is added at the start of production and all products completed are transferred out.
Prepare a schedule showing computations for cost per equivalent unit assuming the
(a) FIFO method
(b) Weighted Average Method.