Zing Inc. calculated cost for an equivalent unit of production using both the weighted-average and the FIFO methods.
Data for July:
Work-in-process inventory, July 1 (36,000 units): Direct materials (100% completed) $ 96,000 Conversion (30% completed) 29,268 Balance in work in process inventory, July 1 $125,268
Units started during July 60,000 Units completed and transferred 72,000
Work-in-process inventory, July 31: Direct materials (100% completed) 24,000 Conversion (60% completed)
Cost incurred during July: Direct materials $180,000 Conversion costs 319,788
60) Compute total equivalent units for materials under the weighted-average method.
61) Compute total equivalent units for conversion under the FIFO method.
62) Compute cost per equivalent unit for materials under the weighted-average method.
63) Compute cost per equivalent unit for conversion under the FIFO method is calculated to be:
64) Compute the cost of goods completed and transferred out under the weighted-average method.