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$26.$ Pitt Enterprises manufactures jeans. All materials are introduced at the beginning of the manufacturing process in the Cutting department. Conversion costs are incurred uniformly throughout the manufacturing process. As the cutting of material is completed, the pieces are immediately transferred to the Sewing department. Information for the Cutting department for the month of May follows.

Units Direct materials Percent Complete Conversion Percent Complete

Beginning work in process inventory $34,000100\%70\%$

Units started this period $170,000$

Units completed and transferred out $143,000$

Ending work in process inventory $61,000100\%80\%$

Production cost information for the Cutting department follows:

Beginning work in process

Direct materials $ $72,300$

Conversion $34,920$ $ $107,220$

Costs added this period

Direct materials $ $343,800$

Conversion $354,750$ $ $698,550$

If Pitt Enterprises uses the FIFO method of process costing, compute the equivalent units for direct materials and conversion respectively for May.

Multiple Choice

$170,000$ direct materials; $168,000$ conversion.

$168,000$ direct materials; $170,000$ conversion.

$204,000$ direct materials; $191,800$ conversion.

$109,000$ direct materials; $109,000$ conversion.

$168,000$ direct materials; $168,000$ conversion.

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